1. LESSONS ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 10 HIRE AND MANAGE A STAFF 10.1 10.1Hire Employees 10.2 10.2Create a Compensation Package 10.3 10.3Manage Your Staff

2. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 10 Slide 2 Lesson 10.2 CREATE A COMPENSATION PACKAGE Determine the amount of pay for employees. Identify a benefits portion of a compensation package. GOALS

3. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 10 Slide 3 As an entrepreneur with paid employees, you will need to create a compensation package. The package should include some type of pay and may provide a variety of benefits.

4. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 10 Slide 4 WAGES AND SALARY Types of pay Hourly wage Salary Commission Combination plan

5. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Wages Payments for labor that are made on an hourly, daily, or per-unit basis Chapter 10 Slide 5

6. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Salaries Payments for labor performed on an annual basis regardless of the number of hours worked Chapter 10 Slide 6

7. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING bonus A financial reward in addition to a regular wage or salary Chapter 10 Slide 7

8. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Commission A percentage of a sale paid to a salesperson Chapter 10 Slide 8

9. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Commission-based salary A salary that varies from month to month depending on how much of a product is sold Chapter 10 Slide 9

10. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Example of commission If you make 10% commission and you sold $490,000 last year, you would make: $490,000 x.10 = $49,000 Chapter 10 Slide 10

11. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Example of Combination Plan You make $6.75 per hour plus 10% of what you sell You work 158 hours last month You sold $11,500 You will make: 158 hours x $6.75 = $1,066.50 (wages) $11,500 x.10 = $1,150.00 (commission) $1,066.50 + $1,150.00 = $2,216.50 Chapter 10 Slide 11

12. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 10 Slide 12 BENEFITS Paid leave Vacation Sick leave Insurance Health benefits Other kinds of insurance (dental, life)

13. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 10 Slide 13 BENEFITS Pension plan Employee and employer contribute money to a pension fund every month. When employees retire, they withdraw the pension funds.

14. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 10 Slide 14 Video Getting a Job

15. ENTREPRENEURSHIP: Ideas in Action© SOUTH-WESTERN PUBLISHING Chapter 10 Slide 15 Assessment 10.2 Answer questions #1-3…omit #4