Thursday, February 25, 2010

Chapter 11

Pay differential applies to an extra or incentive pay to compensate for more difficult working conditions or to adjust to pay toward locations with high living expenses.
It is required by law for a company to maintain a soldiers position if they are called to duty.
What if these two things combine. There are several companies that will make up the employee/soldier's income with a differential. If the job salary is greater than their military salary, then the company will make up the difference. Some companies will go so far as to continue the full pay as well as continue the full coverage of benefits.
Although this is a very noble act, it can also prove to be very costly. In essence, the organization is paying a salary without the work. What if temporary help is needed? This would turn out to be even more costly.
Can there be a sense of discrimination between higher and lower positions? What if an employees position makes less as a civilian than in the military? If differential is used, then what benefits is he affored to?

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