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Perceptions; Workers; Wage & salary administration; Employers; Employee benefits; Cost control; Employees; Wages & salaries
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The Disconnect Between Employer Costs And Employee Value, Kevin F. Hallock
The Disconnect Between Employer Costs And Employee Value, Kevin F. Hallock
Economics Faculty Publications
There is a tremendous disconnect between the cost of compensation to employers and the value employees place on that compensation. Companies pay a lot more for workers than workers see in their paychecks. The average worker in the US costs his/her employee $29.52 per hour. But only $20.50 of that appeared in the worker's paycheck as wage and salary. The other $8.96 is attributable to other employer costs that employees do not immediately see. Of the $8.96, $2.04 is for paid leave, $0.71 is for supplemental pay, $2.60 is for insurance, $1.31 is for retirement savings, and $2.30 is for …