You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login

Reply #9: Yes, definitely. And having worked closely with HR on wage and [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » General Discussion: Presidency Donate to DU
johnaries Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-09-10 06:32 PM
Response to Original message
9. Yes, definitely. And having worked closely with HR on wage and
salary issues I can explain it very simply.

Employee wage and compensation is the largest single expense for all but a handful of companies. Therefore, employers want to make sure they hire quality employees to get the most productivity or "bang for their buck" as it is often called. Further, employee retention is very important because the process of hiring and training is very expensive with no return value until the training is completed.

Every company is competing with every other company for many of the same employees. To effectively compete, HR departments have to track the employee market and what other companies are paying and what benefit packages they are offering. Most "quality" employees seeking long-term employment are looking for a good benefits package as well as good wages.

Like everything else, employee compensation has to be budgeted. If the benefits cost less, then there is more in the budget for wages. In order to compete with other companies in attracting potential employees, with benefits being more or less equal the company will increase wage offerings. Other companies will increase their wage offerings in turn to compete.

Unfortunately, these wage increases usually begin with new hires rather than existing employees. But, as other companies "woo" existing employees away with the increased wage offerings the company will then increase existing wages in order to maintain employee retention.

Therefore, yes, lowering the costs of benefits definitely results in increased wages.
Printer Friendly | Permalink |  | Top
  -Do Premiums Affect Wages? ProSense  Jan-08-10 06:10 PM   #0 
  - I Rec'd  PBS Poll-435   Jan-08-10 06:15 PM   #1 
  - That increased premiums tend to drive wages down a bit does not mean the opposite is true  Hello_Kitty   Jan-08-10 06:24 PM   #2 
  - "Frakt himself acknowledges this in the comments section." No,  ProSense   Jan-08-10 06:51 PM   #4 
     - The Senate is claiming 83% of the revenue raised will come from increased wages by 2019.  Hello_Kitty   Jan-08-10 07:03 PM   #6 
        - "That's an awfully ambitious projection"  ProSense   Jan-08-10 07:17 PM   #7 
  - Of course - as an employer I pay someone 40,000 but benefits cost an extra 16,000  stray cat   Jan-08-10 06:49 PM   #3 
  - True. A lot of employers hire you and hand you  ProSense   Jan-08-10 06:54 PM   #5 
  - And when they drop the insurance, do you give them the 16K? n/t  seaglass   Jan-09-10 12:54 PM   #8 
  - Yes, definitely. And having worked closely with HR on wage and  johnaries   Jan-09-10 06:32 PM   #9 
     - And increased retirement benefits.  Hansel   Jan-09-10 07:35 PM   #10 
        - My company actually took a very progressive approach to rising  johnaries   Jan-10-10 02:21 PM   #11 

Home » Discuss » General Discussion: Presidency Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC