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1 CompensatingEmployees Ch7 2 Whenyoufinishstudyingthischapter youshouldbeableto ExplaineachofthefivebasicstepsinestablishingpayratesDiscussfourbasicfactorsdeterminingpayratesCompareandcontrastpieceworkandteamorgroupincentiveplansListanddescribeeachofthebasicbenefitsmostemployersmightbeexpectedtooffer 3 PayFactors LegalUnionPolicyEquity 4 SomeImportantCompensationLaws FairLaborStandardsAct containsminimumwage maximumhours overtimepay equalpay record keeping andchildlaborprovisionscoveringthemajorityofU S workers 5 SomeImportantCompensationLaws EqualPayAct employeesofonesexmaynotbepaidwagesataratelowerthanthatpaidtoemployeesoftheoppositesexfordoingroughlyequivalentwork 6 SomeImportantCompensationLaws TitleVIIoftheCivilRightsActmakesitanunlawfulpracticeforanemployertodiscriminateagainstanyindividual 7 SomeImportantCompensationLaws AgeDiscriminationinEmploymentActAmericanswithDisabilitiesActFamilyandMedicalLeaveAct 8 HowUnionsInfluenceCompensationDecisions NationalLaborRelationsAct NLRA of1935grantedemployeestherighttoorganizeandtobargaincollectively 9 EquityandItsImpactonPayRates ExternalEquity paymustcomparefavorablywithratesinothercompanies oranemployerwillfindithardtoattractandretainqualifiedemployees 10 EquityandItsImpactonPayRates InternalEquity Eachemployeeshouldviewhisorherpayasequitablegivenotheremployees payintheorganization 11 HowEmployersEstablishPayRates ConductasalarysurveyEmployeecommitteedeterminestheworthofeachjobGroupsimilarjobsintopaygradesPriceeachpaygradebyusingwagecurvesDeveloprateranges 12 Step1 ConducttheSalarySurvey Salary orcompensation surveys formalorinformalsurveysofwhatotheremployersarepayingforsimilarjobsCollectdataonbenefits 13 http stats bls gov 14 Step2 DeterminetheWorthofEachJob Jobevaluation formalandsystematiccomparisonofjobstodeterminetheworthofonejobrelativetoanotherCompensablefactors factorsthatdetermineyourdefinitionofjobcontent establishhowthejobscomparetoeachother andsetthecompensationpaidforeachjob 15 JobEvaluationMethods Rankingmethod rankseachjobrelativetoallotherjobsJobclassification managercategorizesjobsintogroupsbasedontheirsimilarityintermsofcompensablefactorssuchasskillsandresponsibility 16 RankingMethodofJobEvaluation ObtainjobinformationSelectratersandjobstoberatedSelectcompensablefactorsRankjobsCombineratings 17 JobEvaluationMethods Pointmethod involvesidentifyingseveralcompensablefactors eachhavingseveraldegrees andthenassigningpointsbasedonthenumberofdegrees tocomeupwithanactualnumberofpointsforeachjob 18 Step3 GroupSimilarJobsintoPayGrades Paygradecomprisesjobsofapproximatelyequaldifficultyorimportanceasdeterminedbyjobevaluation 19 Step4 PriceEachPayGrade WageCurves Wagecurve showstheaveragepayratescurrentlybeingpaidforjobsineachpaygrade 20 Step5 DevelopRateRanges Maybe10levelsorstepsand10correspondingpayrateswithineachpaygrade 21 PricingManagerialandProfessionalJobs Emphasizenon quantifiablefactorssuchasjudgmentandproblemsolvingTendencyistopaymanagersandprofessionalsbasedontheirperformance 22 PricingManagerialandProfessionalJobs Fourmaincomponents BasesalaryShort termincentivesLong termincentivesExecutivebenefitsandperks 23 CurrentTrendsinCompensation Competency Skill BasedPayEmployeeispaidfortherange depth andtypesofskillsandknowledgeheiscapableof 24 CurrentTrendsinCompensation Skill basedpayprogramsEmployerdefinesspecificskills andhasamethodfordeterminingtheperson spaybasedonhisorherskillcompetencies 25 CurrentTrendsinCompensation BroadbandingCollapsingsalarygradesandrangesintojustafewwidelevelsorbands eachofwhichcontainsarelativelywiderangeofjobsandsalarylevels 26 The NewPay Employerswanttoensurethattheircompensationplansaddvalueintermsofachievingthefirm sstrategicgoals 27 InsertFigure7 5 28 IncentivePlans Individualincentiveprogramsgiveperformance basedpaytoindividualemployeeswhomeettheirindividualperformancestandardsVariablepayreferstogrouppayplansthattiepaymentstoproductivity 29 IncentivePlans Piecework Payistieddirectlytowhattheworkerproduces 30 TeamorGroupIncentivePlans Tyingteamperformancetothecompany sstrategicgoalsMaindisadvantageisthateachworker srewardsarenotbasedjustonhisownefforts 31 IncentivePlans Stockoption therighttopurchaseaspecificnumberofsharesofcompanystockataspecificpriceduringaperiodoftime 32 IncentivesforSalespeople MostcompaniespaytheirsalespeopleacombinationofsalaryandcommissionsTypicallya70 basesalary 30 incentivemix 33 Recognized BasedAwards Studiesshowthatrecognitionhasapositiveimpactonperformance eitheraloneorinconjunctionwithfinancialrewards 34 OnlineAwardPrograms RecognitionprogramsareexpensivetoadministerFirmspartnerwithonlineincentivefirmstoexpediteprocess 35 36 IncentivePlans Meritpay meritraise anysalaryincreaseawardedtoanemployeebasedonhisorherindividualperformance Profit sharingplan mostemployeesreceiveashareofthecompany sannualprofits 37 IncentivePlans Employeestockownershipplan ESOP acorporationcontributessharesofitsownstock orcashtobeusedtopurchasesuchstock toatrustestablishedtopurchasesharesofthefirm sstockforemployees 38 IncentivePlans Gainsharingplans wanttoencourageimprovedemployeeproductivitybysharingresultingfinancialgainswithemployees 39 ScanlonPlan PhilosophyofCooperationIdentityCompetenceInvolvementSystemSharingofBenefitsFormula 40 Earnings at RiskPayPlans Someportionofemployeesbasesalaryisatrisk 41 TechnologyandIncentives EnterpriseIncentiveManagement EIM softwareisusedtoautomatetheplanningandmanagementofincentiveplans 42 43 EmployeeBenefits Benefits definedasalltheindirectmonetaryandnon monetarypaymentsanemployeereceivesforcontinuingtoworkforthecompany 44 PayforTimeNotWorked SupplementalPayBenefits holidays vacations sickleaveandjuryduty 45 PayforTimeNotWorked SeverancePay aone timeseparationpaymentWorkerAdjustmentandRetrainingActof1989 46 InsuranceBenefits Worker sCompensation aimedatprovidingsure promptincomeandmedicalbenefitstowork relatedaccidentvictimsortheirdependents 47 InsuranceBenefits COBRA ComprehensiveOmnibusBudgetReconciliationAct requiresmostemployerstomakeavailabletoterminatedemployeescontinuedhealthbenefitsforaperiod 48 RetirementBenefits SocialSecurityRetirementbenefitsDeathbenefitsDisabilitypayments 49 PensionPlans DefinedBenefitpensionplancontainsaformulafordeterminingretirementbenefitssothattheactualbenefitstobereceivedaredefinedaheadoftime 50 PensionPlans DefinedContributionplanspecifieswhatcontributiontheemployerwillmaketoaretirementorsavingsfundsetupfortheemployee 51 EmployeeServiceBenefits EmployeeAssistancePrograms EAPs formalemployerprogramforprovidingemployeeswithcounselingandadvisoryservices 52 EmployeeServiceBenefits Flexiblebenefitsplans initiallycalledcafeteriaplansbecauseemployeescouldspendtheirbenefitsallowancesonachoiceofbenefitsoptions 53 EmployeeLeasing Leasingfirmbecomesthelegalemployerandhandlesallemployee relatedpaperwork 54 EmployeeSafetyandHealth 55 OccupationalSafetyLaw OccupationalSafetyandHealthActThelawpassedbyCongressin1970 toassuresofaraspossibleeveryworkingmanandwomaninthenationsafeandhealthfulworkingconditionsandtopreserveourhumanresources OccupationalSafetyandHealthAdministration OSHA TheagencycreatedwithintheDepartmentofLabortosetsafetyandhealthstandardsforalmostallworkersintheUnitedStates 56 OSHAStandardsandRecordKeeping OSHAstandardsGeneralindustrystandards maritimestandards constructionstandards otherregulationsandprocedures andafieldoperationsmanual RecordkeepingEmployerswith11ormoreemployeesmustmaintainrecordsof andreport occupationalinjuriesandoccupationalillnesses OccupationalillnessAnyabnormalconditionordisordercausedbyexposuretoenvironmentalfactorsassociatedwithemployment 57 OSHAStandardsExamples Figure16 1 Guardrailsnotlessthan2 4 ortheequivalentandnotlessthan36 ormorethan42 high withamidrail whenrequired ofa1 4 lumberorequivalent andtoeboards shallbeinstalledatallopensidesonallscaffoldsmorethan10feetabovethegroundorfloor Toeboardsshallbeaminimumof4 inheight Wiremeshshallbeinstalledinaccordancewithparagraph a 17 ofthissection Source GeneralIndustryStandardsandInterpretations U S DepartmentofLabor OSHA Volume1 Revised1989 Section1910 28 b 15 p 67 58 WhatAccidentsMustBeReportedUndertheOccupationalSafetyandHealthAct OSHA Figure16 2 59 FormUsedtoRecordOccupationalInjuriesandIllnesses Figure16 3 Source U S DepartmentofLabor 60 OSHAInspectionPriorities InspectionsofimminentdangersituationsInspectionsofcatastrophes fatalities andaccidentsthathavealreadyoccurredInspectionsrelatedtovalidemployeecomplaintsofallegedviolationstandards Periodic special emphasisinspectionsaimedathigh hazardindustries occupations orsubstances Randominspectionsandreinspections 61 ConductofOSHAInspections OSHAofficerarrivesattheworkplace Heorshedisplaysofficialcredentialsandaskstomeetanemployerrepresentative Theofficerexplainsthevisit spurpose thescopeoftheinspection andthestandardsthatapply Anauthorizedemployeerepresentativeaccompaniestheofficerduringtheinspection Theinspectorcanalsostopandquestionworkers inprivate ifnecessary aboutsafetyandhealthconditions Theinspectorholdsaclosingconferencewiththeemployer srepresentativetodiscussapparentviolationswhichmayresultinacitationandpenalty Atthispoint theemployercanproducerecordstoshowcomplianceefforts 62 CitationsandPenalties CitationAsummonsinformingemployersandemployeesoftheregulationsandstandardsthathavebeenviolatedintheworkplace PenaltiesArecalculatedbasedonthegravityoftheviolationandusuallytakeintoconsiderationfactorslikethesizeofthebusiness thefirm scompliancehistory andtheemployer sgoodfaith 63 MostFrequentlyCitedOSHAStandards TheTop10for2002 Figure16 4 Note DatashownreflectFederalOSHAcitationsissuedduringtheperiodOctober2001throughSeptember2002 PenaltyamountsrepresenttheassessmentforthespecifiedcitationasofNovember2002 takingintoconsiderationallsettlementadjustments Source JamesNash Enforcement ScaffoldingIsStillNo 1 OccupationalHazardsJan 2003 p 14 64 InspectionGuidelines InitialContactRefertheinspectortothecompany sOSHAcoordinator Checktheinspector scredentials Asktheinspectorwhyheorsheisinspectingtheworkplace Complaint Regularscheduledvisit Fatalityoraccidentfollow up Imminentdanger Iftheinspectionstemsfromacomplaint youareentitledtoknowwhetherthepersonisacurrentemployee thoughnottheperson sname Notifyyourcounsel whoshouldreviewallrequestsfordocumentsandinformation aswellasdocumentsandinformationyouprovide 65 InspectionGuidelines cont d OpeningConferenceEstablishthefocusandscopeoftheplannedinspection Discusstheproceduresforprotectingtradesecretareas Showtheinspectoryouhavesafetyprogramsinplace Heorshemaynotgototheworkfloorifpaperworkiscompleteanduptodate 66 InspectionGuidelines cont d Walk aroundinspectionAccompanytheinspectorandtakedetailednotes Iftheinspectortakesaphotoorvideo youshould too Askforduplicatesofallphysicalsamplesandcopiesofalltestresults Behelpfulandcooperative butdon tvolunteerinformation Totheextentpossible immediatelycorrectanyviolationtheinspectoridentifies 67 ResponsibilitiesandRightsofEmployers EmployerresponsibilitiesTomeetthedutytoprovide aworkplacefreefromrecognizedhazards TobefamiliarwithmandatoryOSHAstandards Toexamineworkplaceconditionstomakesuretheyconformtoapplicablestandards EmployerrightsToseekadviceandoff siteconsultationfromOSHA TorequestandreceiveproperidentificationoftheOSHAcomplianceofficerbeforeinspection Tobeadvisedbythecomplianceofficerofthereasonforaninspection 68 ResponsibilitiesandRightsofEmployees EmployeeresponsibilitiesTocomplywithallapplicableOSHAstandardsTofollowallemployersafetyandhealthrulesandregulations Toreporthazardousconditionstothesupervisor EmployeerightsTherighttodemandsafetyandhealthonthejobwithoutfearofpunishment OSHAcannotciteemployeesforviolationsoftheirresponsibilities 69 DealingwithEmployeeResistance Theemployerisliableforanypenaltiesthatresultfromemployees noncompliancewithOSHAstandards WaystogaincomplianceBargainwiththeunionfortherighttodischargeordisciplineanemployeewhodisobeysanOSHAstandard Establishaformalemployer employeearbitrationprocessforresolvingOSHA relateddisputes Usepositivereinforcementandtrainingforgainingemployeecompliance 70 OSHASafetyPoster Figure16 5 71 10WaysToGetintoTroublewithOSHA Ignoreorretaliateagainstemployeeswhoraisesafetyissues AntagonizeorlietoOSHAduringaninspection KeepinaccurateOSHAlogsandhavedisorganizedsafetyfiles DonotcorrecthazardsOSHAhascitedyouforandignorecommonlycitedhazards Failtocontroltheflowofinformationduringandafteraninspection Donotconductasafetyaudit oridentifyaserioushazardanddonothingaboutit Donotuseappropriateengineeringcontrols Donottakeasystemicapproachtowardsafety Donotenforcesafetyrules Ignoreindustrialhygieneissues 72 WhatCausesAccidents UnsafeconditionsImproperlyguardedequipmentDefectiveequipmentHazardousproceduresin on oraroundmachinesorequipmentUnsafestorage congestion overloadingImproperillumination glare insufficientlightImproperventilation insufficientairchange impureairsourceUnsafeacts 73 ChecklistofMechanicalorPhysicalAccident CausingConditions Figure16 6 Source CourtesyoftheAmericanInsuranceAssociation From ASafetyCommitteeMan sGuide p 1 64 74 SafetyChecklist Figure16 7 75 HowtoPreventAccidents RemedyunsafeconditionsEmphasizesafetySelectsafety mindedemployeesProvidesafetytrainingUseposters incentiveprograms andpositivereinforcementtomotivateemployeesUsebehavior basedsafetyUseemployeeparticipationConductsafetyandhealthauditsandinspections 76 Cut ResistantGlovesAd Figure16 8 77 EmployeeSafetyResponsibilitiesChecklist Figure16 9 Source Reprintedwithpermissionofthepublisher HRN CopyrightHRN 2003 78 ReducingUnsafeConditionsandActs ASummary Table16 1 ReduceUnsafeConditionsIdentifyandeliminateunsafeconditions Useadministrativemeans suchasjobrotation Usepersonalprotectiveequipment ReduceUnsafeActsEmphasizetopmanagementcommitment Emphasizesafety Establishasafetypolicy Reduceunsafeactsthroughselection Providesafetytraining Usepostersandotherpropaganda Usepositivereinforcement Usebehavior basedsafetyprograms Encourageworkerparticipation Conductsafetyandhealthinspectionsregularly 79 WorkplaceHealthHazards Remedies TheBasicIndustrialHygieneProgramRecognition identificationofapossiblehazardEvaluation assessingtheseverityofthehazardControl eliminationorreductionofthehazardWorkplacehazardsAsbestosExposureInfectiousDiseasesAlcoholismandSubstanceAbuse 80 WorkplaceExposureHazards Chemicalsandotherhazardousmaterials Excessivenoiseandvibrations Temperatureextremes Biohazardsincludingthosethatarenormallyoccurring suchasmold andmanmade suchasanthrax Ergonomichazards suchaspoorlydesignedequipmentthatforcesworkerstodotheirjobswhilecontortedinunnaturalpositions Slipperyfloorsandblockedpassageways 81 DealingwithWorkplaceDrugAbuse Ifanemployeeappearstobeundertheinfluenceofdrugsoralcohol Askhowtheemployeefeelsandlookforsignsofimpairmentsuchasslurredspeech Sendanemployeejudgedunfitfordutyhome Makeawrittenrecordofyourobservationsandfollowupeachincident Informworkersofthenumberofwarningsthecompanywilltoleratebeforerequiringtermination Refertroubledemployeestothecompany semployeeassistanceprogram 82 ObservableBehaviorPatternsIndicatingPossibleAlcohol RelatedProblems Table16 3 Note Basedoncontentanalysisoffilesofrecoveringalcoholicsinfiveorganizations FromManagingandEmployingtheHandicapped TheUntappedPotential byGopalC PatlandJohnI AdkinsJr withGlennMorrison LakeForest IL Brace Park HumanResourcePress 1981 Source GopalC PatlandJohnI AdkinsJr TheEmployer sRoleinAlcoholismAssistance PersonnelJournal62 no 7 July1983 p 570 83 ObservableBehaviorPatternsIndicatingPossibleAlcohol RelatedProblems Table16 3 cont d Note Basedoncontentanalysisoffilesofrecoveringalcoholicsinfiveorganizations FromManagingandEmployingtheHandicapped TheUntappedPotential byGopalC PatlandJohnI AdkinsJr withGlennMorrison LakeForest IL Brace Park HumanResourcePress 1981 Source GopalC PatlandJohnI AdkinsJr TheEmployer sRoleinAlcoholismAssistance PersonnelJournal62 no 7 July1983 p 570 84 WorkplaceSubstanceAbuseandtheLaw TheDrug FreeWorkplaceActRequiresemployerswithfederalgovernmentcontractsorgrantstoensureadrug freeworkplacebytaking andcertifyingthattheyhavetaken anumberofsteps TypesofdrugtestsPre employmenttestsRandomtestsPost accidentReasonablesuspicionReturn to dutytesting 85 ReducingJobStress Personal Buildrewarding pleasant cooperativerelationshipsDon tbiteoffmorethanyoucanchew Buildaneffectiveandsupportiverelationshipwithyourboss Negotiatewithyourbossforreal
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