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Chapters 18
Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved
Current Compensation
• Direct: salaries, wages, tips, bonuses,
commissions
• Indirect: paid vacations, health benefits, life
insurance, free meals, free living
accommodations, use of employer-operated
recreational facilities, discounts on
accommodations at other properties within a
chain
Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved
Deferred Compensation
• Pension benefits
• Social Security
Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved
Determinants of Total Labor
Cost
• Labor turnover rate • Equipment
• Training • Layout
• Labor legislation • Preparation
• Labor contracts • Service
• Use of part-time staff • Menu
• Outsourcing • Hours of operation
• Sales volume • Weather
• Location • Competent management
Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved
Chapter Formulas
Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved
Saving Money by Using
Part-Time Staff
Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved
Saving Money by Using
Part-Time Staff
Part-time dishwashers
Wages: 10 shifts × 7 hours × $4.50 per hour = $315
Benefits: $315 × 10% = $31.50
Total labor cost: $934.50
Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved