VideoMarie Leone, CFO.com | US
October 26, 2007
- What you get out ($)=What you put in (life/time/energy)
In response to a previous comment:
"I find it amazing that young people earning $55,000 to $60,000 have a need to be paid overtime."
"These folks earn a lot. I suggest we worry more about how we compensate our grammar school teachers and less about how we compensate the already well-compensated."
1. Respectfully, we are not a socialist/communist economy. To be fair in a mostly-capitalist economy, "need" should never be factored into compensation. Think of how many times you hear of a woman being passed over for a raise because "HE needs to provide for HIS family".
2. Grammar school teachers typically have more interesting classes in college than a typical accounting student. The not-so-fun accounting classes cause talent to be in short supply, as no one looks forward to sitting through those classes (much less doing it for the rest of their life!). This shortened supply drives up salaries for top talent (big four recruits). Believe it or not, compensation/Job security is the typical accounting graduates main motivation; not a love of excel, long work hours, and general ledgers.
In addition, when they(the accounting students) get a big four job they are expected to work much, much, more hours, in a much less intrinsically rewarding profession than teaching.
3. The pay is not "a lot", but it is not necessarily to low. When coupled with the career kick start (a huge indirect form of compensation) a big four resume gives you, it is fair.
4. You shouldn't be too worried about hardworking, educated, young professionals receiving a starting pay increase though. As I mentioned before, when including the resume building factor, the compensation package is very close to what we should make, if not right on the mark. The price is balanced by supply and demand. Therefore, the compensation structure will probably just revert to the way you described it being in the past-paid overtime, but with base salary lowered to create a total compensation equal to what we receive now.
Personally, I'd prefer the status quo(salary with no overtime). If my salary was lowered to make room for the overtime, the resulting rapidly fluctuating paychecks would make it hard to budget my (apparently enormous) salary!Posted by Cody Comfort | Aug 12, 2008 6:24 PM ET
- Big Four Overtime Pay Suit
I find it amazing that young people earning $55,000 to $60,000 have a need to be paid overtime. When the firms went away from OT in the early '90s (in response to pressure from the DOL) we looked at our associates and senior associates pay with overtime and that became their new base salary without OT. In a professional services environment, being paid OT often times rewards those who are merely inefficient. These folks earn a lot. I suggest we worry more about how we compensate our grammar school teachers and less about how we compensate the already well-compensated.
Posted by Jim Fuehrmeyer | Oct 29, 2007 8:36 AM ET
