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0 pointskcatskcolbdi3y ago0 comments

I assume because hourly wage is easier to track and provides a more direct comparison.

What difference would switching to total compensation make?

0 comments

Because non-wage compensation has made up a bigger and big part of total compensation - healthcare, 401k match, fringe benefits, bonuses, etc.

My dad worked as a teacher and got a super fat pension - that’s not included.

Total compensation has risen much more than hourly wage.

BlargMcLarg3y ago

Do you think those increases truly make up the huge gap between productivity increase and hourly wage increase? What's more, do you think most of near median earners get any significant benefits?

I don't think article is necessarily wrong in pointing out the huge gap when most big total comp increases only seem to apply to the upper middle class. At the very least, I don't think Pizza Friday is going to make up that huge gap.

refurb3y ago

I think you’re underestimating the impact of non-wage compensation, even for normal, middle class jobs. Your “pizza Fridays” is a pretty flippant way to describe things like health insurance, retirement benefits, etc.

When you add up the share of income that goes to employees, total compensation growth keeps up with productivity growth.

https://www.nber.org/digest/oct08/total-compensation-reflect...

1 more reply

kn0where3y ago

There are tons of employers out there that don’t match 401k contributions, make employees pay their healthcare premiums out of their salary, and don’t give meaningful bonuses.

refurb3y ago

Sure, but does that mean you just ignore non-cash compensation when looking at employee compensation? Of course not.

j / k navigate · click thread line to collapse

0 comments

refurb3y ago

Because non-wage compensation has made up a bigger and big part of total compensation - healthcare, 401k match, fringe benefits, bonuses, etc.

My dad worked as a teacher and got a super fat pension - that’s not included.

Total compensation has risen much more than hourly wage.

BlargMcLarg3y ago

Do you think those increases truly make up the huge gap between productivity increase and hourly wage increase? What's more, do you think most of near median earners get any significant benefits?

refurb3y ago

When you add up the share of income that goes to employees, total compensation growth keeps up with productivity growth.

https://www.nber.org/digest/oct08/total-compensation-reflect...

1 more reply

kn0where3y ago

There are tons of employers out there that don’t match 401k contributions, make employees pay their healthcare premiums out of their salary, and don’t give meaningful bonuses.

refurb3y ago

Sure, but does that mean you just ignore non-cash compensation when looking at employee compensation? Of course not.

j / k navigate · click thread line to collapse