1. HFT 2220 Chapter 10 Compensation

2. Two Kinds of Compensation Direct –Immediate –Deferred Indirect –Immediate –Deferred

3. Factors on the Rates of Compensation Economic conditions –Company –Labor Market Employee perceptions of pay Union and governmental influences Employee satisfaction and motivation

4. Influences on Compensation Plans COLA Labor Market Influences Union Influences Government Influences –FLSA –Davis Bacon Act –Social Security Acts Retirement 1935 Income to family of deceased worker 1939 Disability 1956 Medicare 1965 –Equal Pay Act

5. Motivating Employees by Compensation Content theories –All people are motivated by certain common needs Process theories –Identify the factors in any given situation that determines whether an individual will become motivated or not Expectancy theory Equity theory Reinforcement theory

6. Content Theory Maslow’s Hiearchy of Needs –Physiological –Safety and security needs –Social needs –Esteem needs –Self actualization (Fulfillment needs)

7. Expectancy Theory Employees perception of three factors –Expectancy –Instrumentality –Valence

8. Equity Theory What do I receive in return for what I give? What do others receive in return for what they give? –Internal equity – fellow employees in the company –External equity – Workers in similar positions in other companies

9. Reinforcement Theory Positive reinforcement Negative reinforcement Extinction Punishment

10. Determining Job Worth Job Wage Surveys Ranking Methods –Paired comparison Classification Methods Point Methods Factor Comparison Method

11. Current Issues in Compensation Administration Pay secrecy Wage compression Wage expansion Comparable worth Wage and Hour audits

12. Wage and Hour Audits – What They Look For Exempt / Non-Exempt Classifications Time Period – Overtime Hours Worked – Clock Procedures Compensable Time Calculation of Overtime Employees Working more than one job Gratuity / Service Charges Tip Credit Wages

13. Wage and Hour Audits – What They Look For Tip pooling Pay discrimination Policies and handbooks Recordkeeping Independent contractors Training time Payment procedures upon termination I-9 documentation