Getting and Using Compensation Information
According to the national average statistics on the employment compensation rates, the salaries for the actuaries, financial reporting accountants, and financial analysts are as follows; the actuaries’ salary is in accordance to the actuary categories- actuary level 1-5 and the actuarial fellow category. For the level 1 actuary the national median is $ 58,709 with $ 53,176 and $ 64,044 for the 25th and 75th percentiles respectively. On the other hand the total cash compensation rate for this position is $ 68, 907. While for the actuarial fellow, the national median is $ 149,932 with $ 131,564 and $ 166, 262 for the 25th and the 75th percentile respectively. However, its total cash compensation is $ 181, 130.
On the other hand, the national medians for the Financial Reporting Accountants are divided into two categories; Financial reporting accountant 1 and 2. The national median for the financial accountant 1 is $ 51166 with 25th and 75th percentiles being $ 45,974 and 58,416 respectively while the total cash compensation is $ 65,017. On the other hand the financial reporting accountant 2 national median is $ 75,860, 25th and 75th percentiles are $ 65,864 and 86,409 respectively while the total cash compensation is $ 96,013. Finally for the financial analysts, the national median is $ 87,740, 25th and 75th percentiles are $ 57,900 and $ 101,120 respectively. While the total cash compensation is $ 145,580. However, the medians for New York and Illinois states are $ 110,450 and 80,430 respectively.
From the national compensation figures, it is evident that the actuaries and the financial analysts are paid more. This is in line to what I expected since their work involves a lot of analysis of uncertainties unlike the financial reporting accountants who majorly deal with already provided data. The difference in their salary could also be as a result of more financial reporting accountants in the job market.
According to Damp (2007), these jobs are also noted to have different bonuses as percentage of their base salaries. This is because of there are always room in bargaining for the bonuses which again come with the status of a specific employee.
This data does not include the value of stock options for the jobs. This is because the various employers who offer this right to their employees may also be having different values which can not be analyzed to provide consistent information. It is also not normally an obligation to the employees and so its addition here may not be quite influencing to the job seekers information.
From the analysis of these job descriptions, it is true that they are the accurate jobs that I will be applying for. This is because I expected that the actuaries should be dealing more with risk assessment, financial reporting accountants be dealing with preparation of the financial statements, while the financial analysts deal with the investment decisions. However, it is true that there are some jobs which cannot match my expectations. This is because the various organizations which employ people are the ones responsible for assigning the specific job responsibilities.
On comparison of these data to the ones provided by my school’s career office and the other regional sources at the state level, there are differences on the salary amounts. Some of these rates are higher while others are lower than the nationally provided rates. This is because the national figures are an average of the whole United States, but then, these other sources represents specific regions.
This information will be useful to me after graduation when I will use it to come up with an appropriate and reasonable figure as a proposal for my salary. However, when negotiating for my salary after school, I will use the source which quotes the highest pay levels. This is in order to ensure that I have a high bargaining power. However, the amount which I may be offered as salary will be influenced by the level of experience required by the company, the number of potential employees, and the prevailing economic conditions.
The relevant labor market for these jobs is the corporate organizations such as banks, manufacturing companies and insurance companies. However, the differences between the salaries in the different regions are not very big since all these regions are under one legislative body. For instance the financial medians for New York and Illinois states are $ 110,450 and 80,430 respectively.
With the analysis and comparison of the respective median salaries and their low and high averages, it is noticed that there is very slight variations that exist. This is because all these medians are nearly at the mid-points of their respective low and high averages. However, it is noted that there are variations of pay amounts within the same job. This is because the rates are determined by the fact that the employees may be having different experiences on the same job.
These salary data is developed as a result of averaging the salary scales from the different regions and harmonizing it with the nation’s legal requirement rates. However, it can not provide enough information since there are much more facts which can not be the same in all the regions and organizations. The accuracy of the data may also be impaired since some of the primary data obtained for analysis may be wrong. Additionally, it is impossible to use all the determinant factors under the analysis. Therefore, inaccurate data may mislead the individuals looking for employment in their decision making.
Even though this information may be free, I would consider a consultants survey since there are other considerations regarding the contract and other level of benefits associated by different regions whose information can be elaborately provided by the consultant.
If I was manager, I could pay given specific employees more than the results from the provided data in cases where such employees play a central role in the company or in the event that the amount of the income that the company receives is higher than the initial expected profit. On the other hand, I can opt to pay the employee a lower rate in cases where one may still be learning the job or is willing to receive such a lower amount which can be as a result of the high supply of labor.
In conclusion, Knowing that it is not a must that people doing the same job be paid the same would allow me not to use my fellows’ salary rates as the basis of negotiation.
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