Reference no: EM132879944

Question - Compensation Assignment - MS Excel is recommended for this exercise but it can be done with a calculator. Part I - You have job offers for similar management trainee programs from Marriott and Hilton as follows:

Marriott

Gross Annual Income:

$44,000/year as non-exempt, hourly wage employee (wages annualized for 40 hours/week)

OT income: mandatory attendance in 1.50 hour evening training class, in addition to 40-hour work week, or 7.50 hours OT per week

Benefits

Retirement Plan contribution: 10% of gross income paid by Marriott

Health insurance with a $20/week payroll deduction

Vision, Dental insurance, provided by Marriott at no cost to the employee

15 days PTO per year

Hilton

Gross Income:

$47,000/year as non-exempt, hourly wage employee (wages annualized for 40 hours/week)

OT income: mandatory attendance in 1.00 hour evening training class, in addition to 40-hour work week, or 5.00 hours per week

Benefits

Retirement Plan contribution: 5% of gross income paid by Marriott

Health insurance with a $50/week payroll deduction

Vision insurance with a $30/week payroll deduction

Dental insurance with a $20/week payroll deduction

15 days PTO per year

Total the value of each offer and see which is more attractive with the entire compensation package considered. Steps should include:

1. To determine gross income, you will need to find how much you would additionally earn in OT, therefore calculate hourly wage from and OT hourly wage.

2. Using the OT hourly wage, calculate OT wages per week, then for the year. Determine total gross pay for the year (regular wages + OT wages).

3. Calculate retirement plan contribution from employer.

4. Total monetary compensation from wages and retirement contribution.

5. Deduct payroll deductions for insurance.

6. Compare net sum of total package offers.