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Compensation Managment Q3 Q10

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10. What changes are occurring in the workforce relative to the kinds of work employees are performing?
The workforce has changed significantly, technology has taken over which reduces the means for manufacturing work. One of the changes is self-check-out stands at Wal-Mart. Prior to the computerization and automation of manufacturing, the allocation of 40% of revenues for labor costs was a good ballpark figure. In-terms meant for every $1.00 is generated by manufacturing company, 40 cent went for base pay and benefits for the workforce.

3. What is the greatest force for the continuation of poverty in the current democratic-capitalistic society?
The current weak economy has caused many unfortunate changes to America, but perhaps the biggest effect of the dwindling economy is the loss of many jobs. Many companies have been forced to cut jobs or even close their doors for business. Others have also chosen to ship their factories overseas in order to save money by hiring foreign workers at much lower pay than they paid their American workers. All of these decisions by companies were as a direct result of the economy, and without cutting jobs or moving them overseas these companies would of most likely had to shut their doors too. These companies may have made out but they left their workers to the world of unemployment. Also, the old days where Americans had high quality jobs with good wages and great benefits is slowly becoming a thing of the past

Henderson, Richard I. Compensation Management in a Knowledge-Based World, Tenth Edition. New Jersey: Pearson Education, 2006. Textbook.
Shah, A. (1998, July 20). Causes of Poverty. Retrieved October 24, 2014, from http://www.globalissues.org/issue/2/causes-of-poverty

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