2/1/23

CHAPTER 4
COMPENSATION
Dr. Pham Thi Kim Ngoc
[email protected]

CONTENTS
4.1. Establish Strategic Pay Plans 4.3. Benefits and Services
4.1.1. Basic Factors in Determining Pay Rates 4.3.1. Pay for Time not worked
4.1.2. Job Evaluation Methods 4.3.2. Insurance Benefits
4.1.3. How to Create a Market-Competitive Pay Plan 4.3.3. Retirement Benefits
4.3.4. Personal Services and Family-
4.1.4. Pricing Managerial and Professional Jobs
friendly Benefits
4.2. Pay for Performance and Financial Incentives 4.3.5. Flexible Benefit Programs
4.2.1. Money’s Role in Motivation
4.2.2. Incentives for Salespeople
4.2.3. Incentives for Managers and Executives
4.2.4. Team and Organization-wide Incentives Plans

4.1. Establish Strategic Pay Plans

LEARNING OBJECTIVES
• List the basic factors determining pay rates.
• Define and give an example of how to conduct a job evaluation.
• Explain in detail how to establish a market competitive pay plan.
• Explain how to price managerial and professional jobs.
• Explain the difference between competency based and traditional pay
plans.
• Describe the importance of total rewards for improving employee
engagement.

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4.1.1. Basic Factors in

Determining Pay Rates
Wages

Salaries
Several factors should influence any pay
plan’s design.
Direct Financial
Payments
Incentives These include strategic policy
considerations:
Commissions
- equity,
Employee
Compensation Bonuses
- legal,
- and union considerations.
Employer-paid
Indirect insurance
Financial
Payments
Vacations

4.1.1. Basic Factors in

Determining Pay Rates
Aligning Total Rewards with Strategy
The compensation plan should first advance the firm’s strategic aims—management
should produce an aligned reward strategy.
• creating a compensation package that produces the employee behaviors the firm
needs to achieve its competitive strategy.
• provide a clear pathway between each reward and specific business goals.
Many employers formulate a total rewards strategy to support their strategic aims.
• encompass traditional pay, incentives, and benefits,
• more challenging jobs (job design), career development, and recognition.

4.1.1. Basic Factors in

Determining Pay Rates
Equity and Its Impact on Pay Rates
The equity theory of motivation postulates that people are motivated to maintain a balance between
what they perceive as their contributions and their rewards.
In compensation, one can address external, internal, individual, and procedural equity.
● External equity refers to how a job’s pay rate in one company compares to the job’s pay rate in
other companies.
● Internal equity refers to how fair the job’s pay rate is when compared to other jobs within the same
company
● Individual equity refers to the fairness of an individual’s pay as compared with what his or her
coworkers are earning for the same or very similar jobs within the company, based on each person’s
performance.
● Procedural equity refers to the “perceived fairness of the processes and procedures used to make
decisions regarding the allocation of pay.”

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4.1.1. Basic Factors in

Determining Pay Rates
Pay Policies
• The employer’s compensation strategy will manifest itself in pay policies.
• Managers need pay policies on a range of issues.
• One is whether to emphasize seniority or performance
• How to distinguish between high and low performers is another policy issue.
à This necessitated revising the firm’s compensation policies, to differentiate more
aggressively between top performers and others.
à Other pay policies cover how to award salary increases and promotions, overtime
pay, probationary pay, leaves for military service, jury duty, and holidays

4.1.2. Job Evaluation Methods

Employers use two basic approaches to setting pay rates: market-based approaches
and job evaluation methods.
• Many firms, particularly smaller ones, simply use a market-based approach.
à Doing so involves conducting formal or informal salary surveys to determine
what others in the relevant labor markets are paying for particular jobs.
à then use these figures to price their own jobs.
• Job evaluation methods
à involve assigning values to each of the company’s jobs.
à helps produce a pay plan in which each job’s pay is equitable based on what
other employers are paying for these jobs and based on each job’s value to
the employer

4.1.2. Job Evaluation Methods

job evaluation
A systematic comparison done in order to determine the worth of one job relative to another.
- aims to determine a job’s relative worth.
- eventually results in a wage or salary structure or hierarchy
The basic principle of job evaluation is:
- require greater qualifications, more responsibilities, and more complex job duties should
receive more pay than jobs with lesser requirements.
- The basic job evaluation procedure is to compare jobs in relation to one another
By combining the information from the job evaluation and from the salary survey
àcreate a market-competitive pay plan—one where your pay rates are equitable both:
- internally (based on each job’s relative value)
- externally (in other words when compared with what other employers are paying).

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4.1.2. Job Evaluation Methods

Compensable Factors
Two basic approaches to compare the worth of several jobs.
- First, decide that one job is more important than another is, and not dig any
deeper.
- As an alternative, compare the jobs by focusing on certain basic factors the jobs
have in common.
Compensation management specialists call these compensable factors - establish
how the jobs compare to one another, and that determine the pay for each job.

4.1.2. Job Evaluation Methods

Preparing for the Job Evaluation

Job evaluation is a judgmental process and demands close cooperation among
supervisors, HR specialists, and employees and union representatives.
The initial steps include:
- identifying the need for the program,
- getting cooperation,
- and then choosing an evaluation committee.
- the committee then performs the actual evaluation.

4.1.2. Job Evaluation Methods

Job Evaluation Methods: Ranking

The simplest job evaluation method ranks each job relative to all other jobs, usually
based on some overall factor like “job difficulty.”
There are several steps in the job ranking method.
1. Obtain job information
2. Select and group jobs
3. Select compensable factors
4. Rank jobs
5. Combine ratings
6. Compare current pay with what others are paying based on salary survey
7. Assign a new pay scale

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4.1.2. Job Evaluation Methods

Job Evaluation Methods: Job Classification/Job grading

• is a simple, widely used job evaluation method in which raters categorize jobs into groups;
• all the jobs in each group are of roughly the same value for pay purposes
We call these groups classes if they contain similar jobs, or grades if they contain jobs that
are similar in difficulty but otherwise different

classes grades
Grouping jobs based on a set of A job classification system like the
rules for each group or class, such as class system, although grades often
amount of independent judgment, contain dissimilar jobs, such as secretaries,
skill, physical effort, and so forth, mechanics, and firefighters.
required. Classes usually contain Grade descriptions are written based
similar jobs. on compensable factors listed in
classification systems.

4.1.2. Job Evaluation Methods

Job Evaluation Methods: Point Method à the most popular job evaluation method today
• aim is to determine the degree to which the jobs you’re evaluating contain selected
compensable factors.
• involves identifying several compensable factors for the jobs, as well as the degree to which
each factor is present in each job.
Assume there are five degrees of the compensable factor “responsibility” a job could contain.
Further, assume you assign a different number of points to each degree of each compensable
factor.
Notes:
Once the evaluation committee determines the degree to which each compensable factor (like
“responsibility” and “effort”) is present in a job à it can calculate a total point value for the job by
adding up the corresponding degree points for each factor. àThe result is a quantitative point
rating for each job.

4.1.2. Job Evaluation Methods

Computerized Job Evaluations

Most such computerized systems have two main components.
• first, a structured questionnaire.
- contains items such as “enter total number of employees who report to this
position.”
• Second, such systems may use statistical models.
These allow the computer program to price jobs more or less automatically, by
assigning points based on the questionnaire responses.

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4.1.3. How to Create a

Market-Competitive Pay Plan
In a market-competitive pay plan a job’s (7) Review Job Description and Job
compensation reflects the job’s value in the Specifications
company, as well as what other employers are paying
(8) Evaluate the Jobs
for similar jobs in the marketplace.
(9) Draw the Current (Internal) Wage Curve
The 16 steps in creating a market competitive pay
plan begin with choosing benchmark jobs: (10) Conduct a Market Analysis: Salary
Surveys
(1) Choose Benchmark Jobs
(11) Draw the Market (External) Wage Curve
(2) Select Compensable Factors
(12) Compare and Adjust Current and Market
(3) Assign Weights to Compensable Factors
Wage Rates for Jobs
(4) Convert Percentages to Points for Each Factor
(13) Develop Pay Grades
(5) Define Each Factor’s Degrees
(14) Establish Rate Ranges
(6) Determine for Each Factor Its Factor Degree’s
(15) Address Remaining Jobs
Point
(16) Correct Out-of-Line Rates

4.1.4. Pricing Managerial and

Professional Jobs
What Determines Executive Pay?
• Many employers do use job evaluation for pricing managerial jobs
à The basic approach is to classify executive and management positions into grades,
each with a salary range.
• As with nonmanagerial jobs, one alternative is to rank the executive and management
positions in relation to each other, then group into classes those of similar value.
• However, firms also use the job classification and point methods, with compensable factors
like position scope, complexity, and difficulty.
• As with any jobs, job analysis, salary surveys, and the fine-tuning of salary levels around
wage curves play roles.
• Shareholder activism and government oversight have tightened the restrictions on what
companies pay top executives.

4.1.4. Pricing Managerial and

Professional Jobs
Compensating Executives: consists of four main elements.
• Base pay includes the person’s fixed salary as well as, often, guaranteed bonuses such as
“10% of pay at the end of the fourth fiscal quarter, regardless of whether the company
makes a profit.”
• Short-term incentives are usually cash or stock bonuses for achieving short-term goals,
such as year-to-year sales revenue increases.
• Long-term incentives aim to encourage the executive to take actions that drive up the
value of the company’s stock and include things like stock options; these generally give the
executive the right to purchase stock at a specific price for a specific period.
• Finally, executive benefits and perks include things such as supplemental executive
retirement pension plans. With so many complicated elements, employers must also be
alert to the tax and securities law implications of their executive compensation decisions.

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4.1.4. Pricing Managerial and

Professional Jobs
Compensating Executives:
• emphasizes performance more than do other employees’ pay plans
• Indeed, boards are boosting the emphasis on performance-based pay
• The big issue here is identifying the appropriate performance measures.
• Typical short-term measures include revenue growth and operating profit margin.
Long-term measures include rate of return above some predetermined basef

4.1.4. Pricing Managerial and

Professional Jobs
Compensating Professional Employees
• In compensating professionals, employers should first ensure that the person is actually a “professional”
under the law.
• Beyond that, compensating professional employees like engineers presents unique problems.
- Analytical jobs emphasize compensable factors such as creativity and problem solving, ones not easily
compared or measured.
- Furthermore, how do you measure performance?
• Employers can use job evaluation for professional jobs.
- Compensable factors here tend to focus on problem solving, creativity, job scope, and technical knowledge
and expertise.
- Firms use the point method and job classification.
• Most employers therefore emphasize a market-pricing approach for these jobs.
• They price professional jobs in the marketplace as best they can, to establish the values for benchmark jobs.
• Then they slot these benchmark jobs and their other professional jobs into a salary structure.
• Each professional discipline (such as engineer) usually ends up having four to six grade levels, each with a
broad salary range. à This helps employers remain competitive when bidding for professionals who literally
have global employment possibilities

4.2. Pay for Performance and

Financial Incentives

LEARNING OBJECTIVES
• Explain how you would apply four motivation theories in formulating an incentive
plan.
• Discuss the main incentives for individual employees.
• Discuss the pros and cons of commissions versus straight pay for salespeople.
• Describe the main incentives for managers and executives.
• Name and describe the most popular organization-wide incentive plans.
• Explain how to use incentives to improve employee engagement.

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4.2.1. Money’s Role in

Motivation
Fact:
• Frederick Taylor popularized using financial incentives—financial rewards paid to workers whose production
exceeds some predetermined standard—in the late 1800s.
• As a supervisor at the Midvale Steel Company, Taylor was concerned with what he called “systematic
soldiering”—the tendency of employees to produce at the minimum acceptable level.
• Some workers had the energy to run home and work on their houses after a 12-hour day. Taylor knew that if
he could harness this energy at work, Midvale could achieve huge productivity gains.
• In pursuing that aim, Taylor turned to financial incentives.
à At the time, primitive incentive plans were in use, but were generally ineffective (because employers
arbitrarily changed incentive rates).
à Taylor made three contributions:
- saw the need for formulating a “fair day’s work,” namely precise output standards for each job.
- spearheaded the scientific management movement, which emphasized improving work through
observation and analysis.
- popularized using incentive pay to reward employees who produced over standard

4.2.1. Money’s Role in

Motivation
financial incentives productivity
Financial rewards paid to workers The ratio of outputs (goods and
whose production exceeds some services) divided by the inputs
predetermined standard. (resources such as labor and capital).

scientific management
fair day’s work movement
Output standards devised based on Management approach based on
careful, scientific analysis. improving work methods through
observation and analysis.
variable pay
Any plan that ties pay to productivity
or profitability, usually as one-time
lump payments.

4.2.1. Money’s Role in

Motivation
Incentive Pay Terminology
Managers often use two terms synonymously with incentive plans.
Traditionally, all incentive plans are pay-for-performance plans. They all tie
employees’ pay to the employees’ performance.
Variable pay is more specific:
- It is usually an incentive plan that ties a group’s or team’s pay to some
measure of the firm’s (or the unit’s) overall profitability; profit-sharing
plans (discussed later) are one example.
However, confusing as it may be, some experts use the term variable pay to
include incentive plans for individual employees

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4.2.2. Incentives for Salespeople

Salary Plan
A survey also found that “30%
of respondents believe their
sales compensation program
rewarded the right behaviors Sales
‘not well’ or ‘very poorly.’” Commision
Incentive in
Plan
Action
Employers are therefore
moving to align (1) how they
measure and reward their
salespeople with (2) their
firms’ strategic goals

Maximizing Combination
Sales Results Plan

4.2.2. Incentives for Salespeople

Salary Plan
Some firms pay salespeople fixed salaries (perhaps with occasional incentives in the
form of bonuses, sales contest prizes, and the like).
Straight salary makes sense when the main task involves prospecting (finding new
clients) or account servicing.
The straight salary approach also makes it easier to switch salespersons’ territories,
and it can foster sales staff loyalty.
The main disadvantage, of course, is that straight salary may demotivate potentially
high-performing salespeople

4.2.2. Incentives for Salespeople

Commission Plan
Straight commission plans pay salespeople for results, and only for results.
Commission plans tend to attract high-performing salespeople who see that effort clearly
produces rewards.
Sales costs are proportionate to sales rather than fixed, and the company’s fixed sales costs are
thus lower.
Commission plan alternatives include straight commissions, quota bonuses (for meeting
particular quotas), management by objectives programs (pay is based on specific metrics), and
ranking programs (these reward high achievers but pay little or no bonuses to the lowest-
performing salespeople)
Disadvantages: problems abound

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4.2.2. Incentives for Salespeople

Combination Plan
Most companies pay salespeople a combination of salary and commissions, usually with a
sizable salary component.
An incentive mix of about 70% base salary/30% incentive seems typical; this cushions the
salesperson’s downside risk (of earning nothing), while limiting the risk that the commissions
could get out of hand from the firm’s point of view.
Combination plans have pros and cons.
- They give salespeople a floor to their earnings, let the company specify what services the
salary component is for (such as servicing current accounts), and still provide an incentive for
superior performance.
- However, the salary component isn’t tied to performance, so the employer trades away some
incentive value.

4.2.2. Incentives for Salespeople

Maximizing Sales Results

In setting sales quotas and commission rates, the goal is to motivate sales activity but avoid
excessive commissions.
Unfortunately, the tendency to set commission rates informally often reduces plans’
effectiveness. à Setting effective quotas is an art.
Questions to ask include:
- Are quotas communicated to the sales force within 1 month of the start of the period?
- Does the sales force know how their quotas are set?
- Do you combine bottom-up information (like account forecasts) with top-down requirements
(like the company business goals)?
- Are returns and de-bookings reasonably low?

4.2.2. Incentives for Salespeople

Maximizing Sales Results

One expert suggests this rule as to whether the sales incentive plan is effective:
- 75% or more of the sales force achieving quota or better,
- 10% of the sales force achieving higher performance level (than previously),
- and 5% to 10% of the sales force achieving below-quota performance and receiving
performance development coaching.
à The employer should also consider the effect of sales carryover.
In most firms, a significant portion of the sales in one year reflects a “carryover” (sales that
would repeat even without any efforts by the sales force) of sales from the prior year.
Paying the sales force a commission on all the current year’s sales means the employer has paid
a commission on last year’s carryover sales, which the sales force had little or no role in bringing
in this year

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4.2.2. Incentives for Salespeople

Sale Incentives in Action

This approach encourages the salesperson to hold firm on the retail price, and to push “after-
sale products” like floor mats and side moldings.
There may also be extra incentives to sell packages such as rustproofing.
For selling slow-moving vehicles, the salesperson may get a “spiff”—an extra incentive bonus
over commission.
And there are bonuses, such as Salesperson of the Month (perhaps $300 for most cars sold).
Commission plans like these still dominate, but not as much.
- Many dealers are substituting salary plus bonus plans for commissions.
- This reflects the growing emphasis on “one price no hassle” pricing.

4.2.3. Incentives for Managers and

Executives

Managers play a crucial role in divisional and company-wide profitability, and

employers therefore put considerable thought into how to reward them.
Most managers get short-term and long-term incentives in addition to salary.
Of firms offering short-term incentive plans, virtually all—96% in one study—
provided those incentives in cash.
For those offering long-term incentives, about 48% offer them as stock options.
à The options aim to reward management for long-term growth in shareholder
value

4.2.3. Incentives for Managers and

Executives

Strategy and the Executive’s Long-Term and Total Rewards Package

Whether consolidating operations or pursuing growth, firms can’t fully implement most
strategies in just 1 or 2 years.
à the long-term signals you send managers via their long-term incentives can determine
whether the firm’s strategy succeeds.
à The executives’ reward components—base salary, short- and long-term incentives, and
benefits—must align with each other and with the company’s strategic aims.
à Compensation experts suggest first specifying the strategic aims—“What is our strategy
and what are our strategic goals?”—and then deciding what long-term behaviors
(boosting sales, cutting costs, and so on) are important for achieving these strategic
aims.

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4.2.3. Incentives for Managers and

Executives

Strategy and the Executive’s Long-Term and Total Rewards Package

à Next shape each component of the executive total compensation package (base salary,
short- and long-term incentives, and benefits) to encourage these required behaviors; à
then group the components into a balanced plan that makes sense in terms of
motivating the executive to achieve the firm’s aims.
à The point is this: Each pay component should help focus the manager’s attention on the
behaviors required to achieve the company’s strategic goals.
à Criteria include financial performance, number of strategic goals met, employee
productivity measures, customer satisfaction surveys, and employee morale surveys.

4.2.3. Incentives for Managers and

Executives

Short-Term Incentives and the Annual Bonus

For better or worse, employers are shifting away from long-term incentives to put more
emphasis on short-term performance and incentives.
Most firms have annual bonus plans for motivating managers’ short-term performance.
Such short-term incentives can easily produce plus-or-minus adjustments of 25% or more to
total pay.
Three factors influence one’s bonus: eligibility, fund size, and individual performance.

4.2.3. Incentives for Managers and

Executives

Employers first decide eligibility. Second, one must determine Finally, one must decide the
Traditionally, most based annual how big the annual bonus fund actual individual awards.
bonus eligibility on job should be.
Typically, the employer sets a
level/title, base salary, and/or Most employers (33% in one target bonus (as well as
officer status. survey) traditionally use the maximum bonus, perhaps
Some simply based eligibility on sum of targets approach. double the target bonus) for
job level or job title, or salary. This means they estimate the each eligible position.
Recently, more employers are likely bonus for each eligible The actual bonus then reflects
offering a broader range of (“target”) employee, and total the manager’s performance
employee annual incentive plans these to arrive at the bonus
“… in which both executives and pool’s size
other employees participate.”

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4.2.4. Team and Organization-

wide Incentives Plans

Firms increasingly rely on teams to manage their work.

à They therefore need incentive plans that encourage teamwork and focus teams on
performance.
à Team (or group) incentive plans pay incentives to the team based on the team’s
performance.
Organization-wide incentive plans are plans in which all or most employees can participate, and
which generally tie the reward to some measure of company-wide performance. Also called
variable pay plans
HOW TO REWARD THE TEAM’S PERFORMANCE?

4.2.4. Team and Organization-

wide Incentives Plans

Profit-sharing plans are plans in Few would argue with the idea that one of the best ways
which all or most employees of ensuring that employees are engaged and committed is
receive a share of the firm’s annual to ensure that by pursuing his or her goals, the worker
profits. pursues the employer’s goals as well
- With current profit-sharing or The Scanlon plan, developed in 1937 by Joseph Scanlon, a
cash plans, employees share in United Steel Workers Union official.
a portion of the employer’s The Scanlon plan is remarkably progressive and have five
profits quarterly or annually basic features:
- Philosophy of cooperation
- With deferred profit-sharing - Identity
plans, the employer puts cash - Competence
awards into trust accounts for - Involvement System
the employees’ retirement - Sharing of benefits formula

4.2.4. Team and Organization-

wide Incentives Plans

Other Gainsharing Plans earnings-at-risk pay plan

The Scanlon plan is one early Plan that puts some portion of employees’ normal pay at
version of today’s gainsharing risk if they don’t meet their goals, in return for possibly
plans. obtaining a much larger bonus if they exceed their goals.
Gainsharing is an incentive plan employee stock ownership plan (esop)
that engages many or all A corporation contributes shares of its own stock to
employees in a common effort to a trust in which additional contributions are made
achieve a company’s productivity annually. The trust distributes the stock to
objectives, with any resulting cost- employees on retirement or separation from service
savings gains shared among
employees and the company

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4.3. Benefits and Services

“What are your benefits?”

Benefits—indirect financial and nonfinancial payments employees receive for continuing their
employment with the company—are an important part of just about everyone’s compensation.
They include things like health and life insurance, pensions, paid time off, and child-care assistance.
Employee benefits account for about 37% of wages and salaries (or about 30% of total payrolls).
There are many benefits and ways to classify them.
We will classify them as
(1) pay for time not worked (such as vacations),
(2) insurance benefits,
(3) retirement benefits,
(4) personal services benefits,
(5) flexible benefits

4.3.1. Pay for Time not worked

Pay for time not worked—also called supplemental pay benefits—is a very costly benefit, because of the large
amount of time off most employees receive.
Common time-off-with-pay benefits include holidays, vacations, jury duty, funeral leave, military duty, personal
days, sick leave, sabbatical leave, maternity leave, and unemployment insurance payments for laid-off or
terminated employees
supplemental pay benefits Leaves and the Family and Medical Leave Act Parental leave is
Benefits for time not worked such as an important benefit
unemployment insurance, vacation and holiday
Severance pay A one-time payment some employers provide
pay, and sick pay
when terminating an employee.
unemployment insurance (or compensation)
Supplemental unemployment benefits
Provides benefits if a person is unable to work
Provide for a “guaranteed annual income” in certain
through some fault other than his or her own.
industries where employers must shut down to change
Vacations and Holidays machinery or due to reduced work.
Most firms offer vacation and holiday benefits These benefits are paid by the company and supplement
Sick leave unemployment benefits.
Provides pay to an employee when he or she is
out of work because of illness.

4.3.2. Insurance Benefits

Most employers also provide a number of required or voluntary insurance benefits, such as
workers’ compensation and health insurance
Workers’ compensation
Provides income and medical benefits to work-related accident victims or their dependents
regardless of fault.
Health insurance looms large in many people’s choice of employer
because it’s so expensive. Hospitalization, health, and disability insurance helps protect employees
against hospitalization costs and the income loss arising from off-the-job accidents or illness.
Group life insurance
Provides lower rates for the employer or employee and includes all employees, including new
employees, regardless of health or physical condition.

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4.3.3. Retirement Benefits

Social Security Federal program that provides three types of benefits: retirement income at the
age of 62 and thereafter, survivor’s or death benefits payable to the employee’s dependents
regardless of age at time of death, and disability benefits payable to disabled employees and their
dependents.
pension plans
Plans that provide a fixed sum when employees reach a predetermined retirement age or when
they can no longer work due to disability.

4.3.5. Flexible Benefit Programs

Although time off, insurance, and retirement account for the lion’s share of benefits costs, most
employers also provide various services benefits.
These include personal services (such as legal and personal counseling), “family-friendly” services
(such as child-care facilities), educational subsidies, and executive perquisites (such as company
cars for its executives).
Challenging economic times mean employers are revamping their personal services benefits.
Among the most-dropped benefits have been educational assistance, long-term care insurance,
and job sharing.
“Most-added” benefits included legal counseling, lactation rooms, work-at-home policies, and paid
or subsidized off-site fitness.
family-friendly (or work–life) benefits
Benefits such as child-care and fitness facilities that make it easier for employees to balance their
work and family responsibilities.

4.3.4. Personal Services and

Family-friendly Benefits
flexible benefits plan/ cafeteria benefits plan
Individualized plans allowed by employers to accommodate employee preferences for benefits
flextime
A work schedule in which employees’ workdays are built around a core of midday hours, and
employees determine, within limits, what other hours they will work.
Compressed workweek
Schedule in which employee works fewer but longer days each week
Job sharing
Allows two or more people to share a single full-time job.
Work sharing
Refers to a temporary reduction in work hours by a group of employees during economic
downturns as a way to prevent layoffs.

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THANK YOU!!!!

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