Employees receive compensation from a company in return for work performed. While most people think compensation and pay are the same, the fact is that compensation is much more than just the monetary rewards provided by an employer. According to Milkovitch and Newman in Compensation, it is "all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship" The phrase "financial returns" refers to an individual's base salary, as well as short- and long-term incentives.
Private sector employment increased by 208,000 jobs from October to November according to the November ADP National Employment Report®. Broadly distributed to the public each month, free of charge, the ADP National Employment Report is produced by ADP®, a leading global provider of Human Capital Management (HCM) solutions, in collaboration with Moody’s Analytics. The report, which is derived from ADP’s actual payroll data, measures the change in total nonfarm private employment each month on a seasonally-adjusted basis.
To you, their salaries are just a line item in the budget. To your employees, they're much more. Your employees are your business, so ignore the following truths at your peril:
All employers (other than those who employ individuals who harvest crops by hand) are required to pay their employees:
- On or before the first day of each calendar month, all wages earned during the first 15 days of the preceding calendar month; and
- On or before the 15th day of each calendar month, all the wages earned during the preceding calendar month from the 16th day to the end of the month.
See if this scenario sounds familiar: Your association began with fewer than 10 employees. Each was hired at a pay level resulting from individual negotiations. Starting pay was probably based on what they were earning at their previous job or some similar criterion.
The Consumer Price Index (CPI) is a program conducted by the US Department of Labor/Bureau of Labor Statistics that produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. The important value to note here is the “change” in the cost of those goods and services over the past 12 months.
According to WageAccess, the Michigan Chamber’s Salary and Benefits Survey, Michigan employers are projecting that they will pay an average 2.7% of payroll for merit increases for 2014. This is a significant improvement over the reported 2013 budgeted merit increase average of 2.3%. What is even more interesting is, although Michigan employers budgeted for only 2.3% for merit increases in 2013, they actually paid an average 2.6% in merit increase pay to their employees last year.