Page 628 - Business Principles and Management

Chapter

Managing Human Resources 23

23.1 Human Resources in Business
23.2 The Employment Process

23.3 Employment Law

RE ALITY CHECK

A Hard Decision

atrick Gomez and his parents were discussing two job offers he had
received. Both jobs were in marketing research, the area of business in
Pwhich he wanted to work. One job was with a contract research organi-
zation, and the second was in the marketing department of an international
manufacturer. He thought he would enjoy working for either company.
The major difference between the job offers was the rate of pay and the
benefits. In the first job, Patrick would be considered a contract employee.
He would receive $15 per hour. He would work a minimum of 35 hours
per week and most weeks would work a full 40 hours. However, there were
no benefits such as insurance or paid holidays.
The second job paid an annual beginning salary of $21,000. Patrick
would work a minimum of 40 hours per week, with occasional weekend
work during busy times. He would receive two weeks’ paid vacation plus
five additional holidays. The company would contribute $150 per month
and Patrick would pay $55 per month for health and dental insurance. He
would also have a company-paid life insurance policy worth twice his
annual salary. Each year the company would contribute an amount equal
to 5 percent of Patrick’s salary to a retirement plan. If Patrick stayed with
the company for five years, he would become part of the retirement plan
and would be entitled to the money upon retirement.
As Patrick considered the choices, he was impressed with the possibility
of earning over $31,000 per year at the first company if he worked 40 hours
per week for the entire year. He had a number of school loans to pay off,
and the extra money would come in handy.
However, his parents reminded him that he was not guaranteed all of
those hours and could take no vacations if he expected to earn that much
money. Although he had no major health problems, any illness could be
expensive and would be covered by the health insurance of the second
company but not by the first. And, even though Patrick was only 22 years
old, beginning to save for retirement at an early age was an important
consideration. Patrick knew he had a difficult decision to make. He had
never considered how salary and benefits could affect a job decision.

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