Week 8, Compensation

At my current place of work, all managers above/including assistant managers are salaried. As the staffing shortage in the labor market began to get increasingly worse we saw many managers begin to work “overtime” and well over an average of 40 hours per week simply because of demand. This began to create a scenario similar to the one that Boloco’s Burrito shop founder John Pepper came across in his early years of founding the restaurant. That there begins to be little in the transaction to work for the worker when wages slump. Both my employer and John Pepper responded in the same way, raising wages in hopes that staff would be more inclined to take better care of the customer (Greenhouse, 2014). While this did slow down the unprecedented turnover rate that we have seen in healthcare at my specific facility, it also helped with morale among entry-level management positions. Often ones that have to stay later or come in early if there is a mishap for the day, getting paid more has helped these people at my work feel more satisfied and want to stay employed there.

I was among this group and personally started to feel like the transaction of coming to work for 12 hours a day 5 days a week was not worth the pay. This analysis is described as compa-ratio and is how I perceived my inputs were more than my coworkers while my outputs were less than, negative inequity (Swift, 2021). After the raise was given to my level of management I began to have a positive inequity perception that made me feel better about putting so much into a company. This is what ultimately kept me working there over the pandemic as it has made things extremely difficult to work there while going to school.

  1. Greenhouse, S. and Strom, S. Paying Employees to Stay, Not to Go (Links to an external site.). July 4, 2014 (link to article published in The New York Times)
  2. Swift, Michele. Lectures. 2021

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