Question

Average Weekly Earnings (2011)
• Mining, oil, and gas $1,737
• Utilities $1,644
• Professional, scientific, technical services $1,213
• Public administration $1,114
• Construction $1,091
• Finance and insurance $1,064
• Manufacturing $982
• Logging and forestry $974
• Education and related services $956
• Transportation and warehousing $919
• Health and social services $809
• Arts, entertainment, and recreation $551
• Retail trade $513
• Accommodation/food/beverage services $357

1. Examine the list of industries and pay rates above. Provide two possible reasons WHY each
industry has the relative pay level that it does.

Compensating differential
• Seasonal employment
• Cost of living
• Poor working conditions
• Poor industry reputation

2. Based on the concept of “compensating differentials,” develop a list of job/organizational
characteristics that would make you willing to work for less money. Then develop a list of
job/organizational characteristics that would cause you to want more money to accept a
given job.

Answer 1

INDUSTRY	REASON 1	REASON 2
Mining, oil, and gas $1,737	In this industry certain jobs like the mineral mine would operate only through the warmer months and the people would have to change locations or even jobs when a phase of mine is complete.	This is also one reason for the payment being high as it might require workers to live in remote areas or be at sea or underground.
Utilities $1,644	This involves high payment as they would have to work for long hours.	And also the fact that they need qualified professionals for working in this field which would again increase the pay.
Professional, scientific, technical services $1,213	Another reason is that the working conditions are highly dangerous and hazardous chemicals etc. are involved.	This also have higher pay as professionally qualified employees are required and that would cost more.
Public administration $1,114	One reason for a high payment is to keep the morale of the employees as they are involved in keeping the public safe and secure.	Another would be that the burden put on these people are high and are expected to clear more tough government based exams which make their status higher.
Construction $1,091	The work involved are seasonal and on the basis of winning the contracts.	Also the fact that this involves hazardous and unsafe working sites also makes it more payable.
Finance and insurance $1,064	People are paying high for both these services in order to help them save costs elsewhere.	This is also made for keeping their assets and liabilities at par and less risky.
Manufacturing $982	The fact that there is a poor working condition in the factory makes it payable at a high rate.	This also holds high pay because in majority of the segments in this industry, the works are seasonal and need technically professional people to lead the operation.
Logging and forestry $974	The working condition is one reason as people would have to stay in forests endangering their life.	There is also a low credibility due to the same reason as people do not come forward for the same.
Education and related services $956	The clerical work involved is high which make them work for long hours than they are supposed to and makes it demanding.	It also requires people who are qualified and holds higher degrees again making it more payable.
Transportation and warehousing $919	The cost involved in the transportation and keeping or warehousing of the goods makes this highly payable.	The timely delivering of the goods is also a part for making this highly payable.
Health and social services $809
Arts, entertainment, and recreation $551	Here the lower profile actors and technicians are paid lower despite of high stress as all the higher payments goes to lead actors and agencies get involved.	Another reason is that people are ready to give in for lower payments in order to get a break or debut which makes it easier for employers and tough for the artists.
Retail trade $513	This is lower pay is also due to the fact that it is not a seasonal employment and they would be employed for the whole year.	This holds a lower pay as the working conditions are really easy and not putting them under any hazardous conditions.
Accommodation/food/beverage services $357	This has a lowest pay as it is not a seasonal job and this is mostly opted by many people for an additional living as a part time job.	It also has a lower pay as it is considered to be a lower grade job as it mainly has waitressing and housekeeping. And only people with lower qualification profile would choose this unless it is a seven or five star hotel.

2. Based on the compensating differentials the following would make me willing to work for less compensation;

- A work which is only for a maximum of 10 hours a week which would allow me to make money out of some more part time jobs.

- Working for a reputed company assisting a higher executive through which I get more exposure and chances for networking.

- Seasonal jobs which would help me earn good amount during the off season from the insight and experience I earned from there.

- Having an automated work culture would also let me work for less amount.

And some reasons that would make me earn more money would be as follows:

- Long hours of working.

- I have a professional degree which makes me have the right to earn more.

- The tasks are high profiled and the risks involved are high.

- My major task in to win company the projects which are highly profitable and reputable.

- And the skilled Deployment involved is high.

- The working conditions and the credibility of the industry are lower as in mining, oil, gas industry.