CD - Trends in the Job Market Lesson

Trends in the Job Market

Businesses in developed countries including the U.S. are unique in that they are created based on supply and demand. Business owners develop ideas that they turn into a businesses based on needs that are seen in the marketplace. There are few government restrictions and very little ownership by the government. Owners are free to trade with whomever and run their business with minimal government interference. This type of system is called a free enterprise system. It allows businesses to choose their own model and determine what works best for operating the business efficiently day to day. It also allows flexibility in how to handle work flows and schedules for their employees. As a result, over time, many workplace trends have developed that allows employers to be flexible in how employees spend their time on the job. This benefits the employee and the employer. Access the learning object below to obtain information about trends in the workplace.

Workplace Trends Interactive

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Workplace Trends

When searching for the right job, it is important to consider the entire compensation package offered by potential employers. By learning to understand various types of compensation and how to calculate the total value of that compensation, you can ensure you are getting the most from the job you choose.

Once you have completed your post-secondary education or job training program, you will begin seeking employment. As you look at which jobs to apply for and consider various employment offers from employers, understanding the entire compensation package being offered and analyzing its value is an important part of the decision making process.

One of the first things to determine is whether or not the position is exempt or non-exempt in terms of the way wages are paid. If you are hired as an exempt  employee, you will be expected to perform full-time job-related work for a set amount of money, regardless of whether or not you work overtime hours. Full-time employment is typically considered 40 hours per week, but many salaried workers provide employers with more hours than this - sometimes many more. Non-exempt  employees are paid on an hourly basis, and federal law requires that they be paid an overtime rate of 1½ times the hourly rate for all time they work in excess of 40 hours each week. In these types of positions, the hourly wage can vary greatly depending on the duties and responsibilities of the job.

While hourly pay may seem to be the better option if one expects to work overtime, there are drawbacks as well. Exempt employees are often paid for days they are sick or on vacation, whereas non-exempt employees are usually only paid for the hours they actually work.

When looking at a job offer, it is important that you clearly understand exactly what your base pay rate will be. For salaried positions, this figure is typically provided as a monthly or annual salary amount. For hourly positions, this amount is provided as an hourly wage. The federal government sets standards for the minimum hourly wage that employers can pay employees, but many hourly positions pay above this minimum.

In addition to actual money paid to employees, there are many other benefits that employers may offer. These benefits can be everything from insurance and medical coverage to pensions, profit sharing, and gym memberships. For many employees, these benefits are sometimes just as important as the salary being offered. Since medical and dental care is so expensive, employers who offer these options as part of the compensation package are often quite desirable.

Another important factor to consider when reviewing a job offer is paid time off (PTO). Paid time off can be used for many things: vacation, attending to personal business, etc. Employers may offer paid time off as set holidays such as Thanksgiving or as vacation where employees are paid their usual pay for work even though they are not performing any work for the employer. Sick leave is also offered by many employers, so that if an employee is ill or temporarily disabled, days may be taken off from work. Some employers offer full or partial payment for a certain number of sick days, while others allow employees to take sick days without pay.

Profit sharing is another popular benefit that some employers offer. By issuing stocks, bonds, or cash, the employer shares some of the company's profits with employees. Most of the time, this is not a guaranteed benefit. The company must reach a certain profit level before profits are shared with employees.

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