The document discusses objectives of office salary administration, including attracting, retaining, and motivating employees while maintaining competitiveness. It details salary surveys, their data sources, and outlines the Fair Labor Standards Act's requirements regarding minimum wage, equal pay, overtime, and child labor. Additionally, it covers collective bargaining processes and describes various pay structures and incentive plans used to reward employee performance.

1. Chapter 10
ADMINISTERING OFFICE
SALARIES

2. Objectives of Office Salary
Administration
• To attract workers
• To retain workers
• To motivate and reward high-level
performance
• To maintain a competitive position.

3. SALARY SURVEY
• Is a statistical picture of the salaries for
certain jobs in a particular geographic
area or for a certain industry at a given
time.

4. OBTAINING SALARY SURVEY
DATA
A. Professionally Prepared Surveys,
comparative salary data on may
benchmark, or key, office positions may
be found in the surveys that are
conducted regularly by professional
organizations, trade associations, and the
government.

5. B. Consultants, rather than use professional
wage and salary or conducts its own
survey, the company may employ the
services of a consultant who will
professionally conduct, analyze, and
interpret the survey.
C. Conducting One’s Own Survey, the
greatest advantage realized by the firm
that conducts its own survey is that the
firm obtains salary data stated in terms of
its own compensation program.

6. Fair Labor Standards Act of
1938
Generally, an office occupation is
covered by the FLSA if the firm and the
jobholder (1) deal with the movement of
goods in interstate commerce involving the
interstate transmission of documents or (2)
require the use of interstate facilities.

7. • Minimum Wage, all employees must be
paid at least the minimum wage, whether
they are paid a salary by the hour, by
piecework, or by any other method.
• Equal Pay for Equal Work, prohibits
employers from setting different wages
based solely on the sex of workers who are
doing equal work.
• Overtime Hours and Overtime Pay,
overtime, or premium, pay is required for all
hours worked in excess of 40 in a workweek.

8. • Child-Labor Restrictions, children below
certain ages may not be employed in
interstate activities. Restrict employment
of children under 18years of age.
• Exempt Employees, certain groups of
employees such as administrators,
professionals, and executives, are fully
exempt from the minimum wage and
overtime pay requirements of the FLSA.

9. COLLECTIVE BARGAINING
Is a negotiation process between an
employer and labor union representatives
on work-related issues such as wages,
hours of work, and working conditions.

10. DETERMINING PAY GRADES
AND SALARY RAGES
• Group the jobs that have the same number of
point values.
• Establish the pay grades by assigning a
constant progression of points to each grade.
• Using the salary survey data, determine the
weekly base salary for the benchmark job in
each pay grade.
• Establish a pay range for each of the base
salaries

11. VARIABLE PAY PLANS
Is any form of direct compensation, not
included in the employee’s base pay, that
varies according to employee or corporate
performance. Companies are better able to
provide rewards to teams of involved
workers who have the information,
knowledge, and power to influence of
results.

12. TYPES OF INCENTIVE PLANS
• Individual Incentive Plan, office workers are paid
according to their own production of effort.
• Group Incentive Plan, the office worker shares in the
achievement of a group of coworkers who are working
as a team to produce more than their expected
efficiency.
– Profit-Sharing Plans
– Employee Stock Ownership plans
• Stock option plan
• Restricted stock plan
• Stock purchase plan
– Gain sharing Plans

13. After the office jobs have been priced
and salary ranges established, a decision
must be made on how salary increases will
be provided, taking into consideration
automatic salary progression, cost-of-living
adjustment, pay for performance, and pay
for skill. For certain kinds of office works, the
AOM should consider the use of variable
pay, whereby workers are rewarded for their
increased production and outstanding
performance.