Nov. 1, 2002

Compensation vs. benefits

David V. Martinez can say that compensation is one thing and benefits are another -- after all benefits and compensation are different departments in Human Resources (HR). Nevertheless, to separate them and say that compensation doesn't have to be equal but benefits must be equal would be a controversial new rule. Both are pay for work performed by employees. Nevertheless, benefits have not been equal at the Laboratory for as long as I have worked here.

Consider life insurance. All employees do not get the same amount of Lab-provided term life insurance. It is based on their salaries. Employees get the amount of their salary in term life insurance free. They also get ability to purchase more in proportion to their salary. A person earning $40,000 per year gets $40,000 worth of life insurance and the option to purchase up to $200,000. A person earning $100,000 gets $100,000 worth of life insurance free and the option to purchase up to $500,000 worth. There is a similar case in the area of disability insurance.

So here is a case where those who earn more get far greater benefits than those who earn less. By Mr. Martinez's argument we would have to give everyone the same amount of term life insurance and the same opportunity to buy more. Yet I doubt that he would argue to lower the benefits for those who earn more, but lowering the benefits of those who make more would make sense if we were to insist that benefits be given equally to all.

So is the argument that everyone should get the same benefits or that we should do nothing to help those who earn less?

Another way to look at this situation is that those who earn less than $40,000 per year just got a small raise, in the form of cheaper health care. Of course this implies that compensation and benefits are basically the same, which I believe they are to most job hunters. Should a person take the job with the high salary and low benefits or should the same person take the lower paid job that carries higher benefits?

I know that when I apply for jobs, I calculate the value of the benefits and add that to the salary before I make a decision between job offers. I believe most people do the same.

John D. Huchton, however, is clear about not helping the lower paid. Nobody helped him so he doesn't think anyone else should get help either. I find such people tend to forget about the benefits they have received from the government, such as free public schools, public transportation to school, scholarships, colleges which are largely financed by taxpayers and non-profit organizations. Most people have received a lot more help from the government than they are aware of. One rarely finds a highly paid professional who has not received considerable benefit from both the state amd federal government. I find it hard to understand why they begrudge government help to others who need it.

--Betty Ann Gunther