1. What You Can Expect From Your Employer
Section 8.2
What You Can Expect From Your Employer
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2. Typical forms of payment Common employee benefits
WHAT YOU’LL LEARN
Typical forms of payment
Common employee benefits
The importance of employee performance reviews

3. WHY IT’S IMPORTANT
Understanding company policies and procedures will help you perform your best and protect your rights.

4. hourly wages overtime nonexempt employees exempt employees salary
KEY TERMS
hourly wages
overtime
nonexempt employees
exempt employees
salary
commission
continued

5. profit-sharing plan performance bonuses pension plan probation layoff
KEY TERMS
profit-sharing plan
performance bonuses
pension plan
probation
layoff

6. Basic Payment Methods
Hourly wages are a fixed amount of pay for each hour worked.
At the end of each week, pay is calculated by multiplying the number of hours worked by the hourly rate.

7. Basic Payment Methods
Overtime is hours worked beyond 40 hours in a week.
Usually, workers on overtime are paid one and one-half times their normal pay for each hour in excess of 40 hours.

8. Basic Payment Methods
Nonexempt employees are workers who are eligible for overtime.
They generally earn an hourly wage.

9. Basic Payment Methods
Exempt employees are workers who are not eligible to earn overtime pay. They generally earn salaries.
A salary is a fixed amount of pay for a certain period of time, usually a month or a year.

10. Basic Payment Methods
Workers who earn a commission are paid based on how much they sell.
By basing pay on performance, this system aims to motivate salespeople to work harder.

11. Incentive Plans
A profit-sharing plan is a program that gives workers a portion of their company’s profits.

12. Incentive Plans
With a profit-sharing plan, the better the company performs, the more profits workers receive.
This encourages them to work toward the company’s success.

13. Incentive Plans
Performance bonuses are rewards given to workers for high levels of performance.
Some companies pay bonuses to workers who increase the quality or quantity of their work.

14. Benefits
Benefits are the “extras” that a company provides in addition to pay.
There is usually a waiting period before employees are eligible for benefits.

15. Health Benefits Health insurance is the most sought- after benefit.
It’s also the most expensive one for employers.

16. Health Benefits
Many employers have increased the amount that their employees are required to contribute toward their health care coverage.

17. Retirement Plans
A pension plan is a benefit that builds a retirement fund for each worker.
Some employers make contributions for each worker.

18. Retirement Plans
Some retirement plans allow workers to contribute a portion of each paycheck to their retirement fund.
Many companies match the amount of each worker’s contribution up to a certain percentage of his or her salary.

19. Convenience Benefits
Convenience benefits are services that make workers’ lives easier, such as flexible work hours and legal counseling.

20. Cafeteria Plan
A cafeteria plan is a policy that lets employees choose the benefits they want.
For example, an employee might choose disability insurance instead of vacation time.

21. Employee Compensation
Graphic Organizer
8.2
Employee Compensation
INCENTIVE
PLANS
Bonuses
Stock options
Profit sharing
BENEFITS
Health insurance
Paid vacations
Retirement plan
Convenience benefits
PAYMENT
Salary
Hourly wages
Overtime
Commission
Chapter 8 • Beginning a New Job
Succeeding in the World of Work

22. Honest and Fair Treatment
You have the right to expect your employer to be honest with you.
You should receive the pay and benefits that were promised to you when you were hired.

23. Honest and Fair Treatment
You have the right to be treated fairly by your employer, supervisor, and coworkers.
If you feel you have been treated unfairly, discuss it with the person involved.

24. Evaluations Many companies have formal, scheduled performance reviews.
Promotions, pay increases, new responsibilities, and your future with the company may be based on these evaluations.

25. Evaluations
Probation is the period after an employee is first hired, when he or she is “on trial.”
During your probation period, your employer will decide whether you are suited to the job.

26. Standard Separation Procedures
A layoff is a job termination that results when a company’s business becomes slow.
Workers who are laid off may be rehired once a company’s business improves.

27. Standard Separation Procedures
Companies may also terminate, or end, a worker’s employment because of that worker’s poor performance.

28. Standard Separation Procedures
Even if you are employed, keep your job-hunting network active and your skills up-to-date.
Put money aside to help you through periods of unemployment.

29. Key Concept Checkpoint
SECTION 8.2 REVIEW
Key Concept Checkpoint
Comprehension
Why does working for a commission offer less financial security than working for a salary?
continued

30. Key Concept Checkpoint
SECTION 8.2 REVIEW
Key Concept Checkpoint
Comprehension
How do benefits improve employee morale?
continued

31. Key Concept Checkpoint
SECTION 8.2 REVIEW
Key Concept Checkpoint
Comprehension
Why are performance reviews as important to workers as they are to employers?
continued

32. Key Concept Checkpoint
SECTION 8.2 REVIEW
Key Concept Checkpoint
Critical Thinking
What steps would you take if you received a negative performance review?

33. What You Can Expect From Your Employer
End of Section 8.2
What You Can Expect From Your Employer
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