|
|
| *Resource of HR>>>employee benefits |
Pay cut for permanent employee because of benefits? |
My husband is a temp employee at a well known company. They are saying they want to hire him as a permanent employee and that he will recieve full benefits. As a result of him getting full benefits they want to reduce his hourly pay when they do hire him on (by a dollar or more). Has anyone ever heard of this before? I've never run into this situation before. Is this normal? This is not uncommon. In fact, much of the time if you work out the value of the benefits the full timers actually come out ahead in spite of the slightly reduced pay. Keep in mind that temporary labor is paid more because the company doesn't have to provide for unemployment insurance, retirement plans, group medical plans, etc... However, temps are the first to go during the lean times. Insurance is expensive!! Don't discount the value of group medical benefits in making your decision. However, keep in mind that the cost and coverage vary greatly from company to company. In most cases you get good coverage for much less than you would pay as an individual. OTOH, sometimes the coverage just plain sucks, so be careful here. 401K - Keep in mind that most companies match dollar for dollar up to a certain percentage of your pay. Not only is this a good way to save for retirement with pre-tax dollars, in effect it raises your salary without raising your tax bracket. |
| Tags |
| employment insurance employment law employment opportunity employment service employee benefits employee evaluation employee handbook employee motivation employee of the month employee retention |
Categories--Copyright/IP Policy--Contact Webmaster For personal non-commercial use only. |