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Essay / Research Paper Abstract
This 7 page paper examines salaries, commissions and stock benefits for employees and independent contractors. Ethics are explored.
Research is provided to support the assumptions. Bibliography lists 3 sources.
Page Count:
7 pages (~225 words per page)
File: RT13_SA807mny.rtf
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Unformatted sample text from the term paper:
Employees also sometimes get benefits and stock options, but when it comes to employees, the work for hire agreement is clear. There are sometimes contracts involved, but in terms of
how the money flows, it is a legal, well known concept. However, sometimes people are paid on commission or are provided with stock. Sometimes, there is abuse in certain types
of arrangements. Indeed, there are pitfalls when paying employees in certain ways. While employers believe that highly compensated employees will perform best, that is not necessarily true. In sales jobs,
such as in real estate or insurance, the workers are generally paid on commission. Sometimes, they are provided with a stipend as a loan against the commissions that will roll
in later on. Similarly, authors are given an advance on the royalties they are expected to earn. Obviously, earnings are at risk for certain individuals. For example, in the sales
business, there is a high turnover. A real estate broker has a multitude of agents working for no money until a deal is made. The broker will get money for
every deal made while sitting back and doing nothing. While there is overhead, and that deserves some compensation, new entrants often work hard and do not always earn money. A
salary and benefits is a much more secure way of doing things. Sometimes, companies that are starting out will offer workers stock options. This provides the hope of more
money down the road, but again, this can turn out to be a raw deal if the company does not do well. In each of these cases of unconventional pay
schemes, there is more risk on the part of the worker. Of course, while that is the case, there is usually the potential to earn a lot of money
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