Please read each passage below and respond to each part. I DO NOT need a reference or title page, however please provide the reference(s) underneath the passage. Please label as I have done below, example Part 1 and place your response along with the reference. Please keep each one on the same document! Please cite properly and use correct grammar.
Throughout Asian countries, China has the highest average pay rate (Martocchio, 2017). As Martocchio (2017) went on to explain, China’s high wages can be attributed to a large trade surplus in the country as well labor shortages that China has experienced. According to Asinta (2021), China has mandated retirement funds, medical coverage, unemployment benefits, workers compensation, and maternity benefits.
In the US, there are also mandated benefits that companies must offer, but they are not as generous as those offered in China. For example, maternity leave is an additional bonus, many times new parents need to wait until they qualify for FMLA to cover their time away from work to welcome or place a new child. In the US, minimum wage has been slowly increasing, in 2013 Obama started the initiative by raising the federal minimum wage to $10.10 an hour (Martocchio, 2017). Now, many states are making the decision to raise their own wage requirements and companies are establishing their own pay rates to attract and retain employees. Additionally, even though employee benefits are not mandated as they are in China, more and more companies are choosing to offer generous benefits because that is what attracts desired talent. Even though the benefits are not mandated as they are in countries such as China, it is becoming more and more obvious that offering these benefits are beneficial to companies and furthermore, the economy.
Asinta. (2021, August 25) China. https://www.asinta.com/countries/employee-benefits-in-china/
Martocchio, J.J. (2017). Strategic compensation: A human resource management approach (9th ed.). Pearson.
It is known that each country has pay and benefits practices that differ from other countries due to the difference in the economy and government of each country. However, similarities may arise due to the interaction between nations in the global market (Martocchio, 2017). In this discussion, I look to compare the compensation in the United States and China. The currency in China is the Renminbi, while the US is the US dollar. The US dollar has more value than the Renminbi in the international market, being approximately six times more valuable. Their purchasing power in their respective local markets is pegged. Therefore, their compensation is relative to each other if compared.
In both countries, compensations are in the form of salaries and wages, with commissions and bonuses provided depending on an individual’s profession. The hourly wage in China is set at 1.73 dollars, while in the US, it is 7.25 dollars (NATIONMASTER, 2022). Therefore, the compensation in China is lower than that of the United States. The United States does not have medical care benefits for all employees, while in China, medical care and maternity benefits are provided (asinta, 2022). This is an important sector that puts China ahead of the US in that sector, as the population’s welfare is taken care of. Most of all, the other benefits are similar in both countries. This entails retirement benefits, unemployment benefits, and workers’ compensation. The employees in the United States of America have paid vacation days as a benefit, where they get vacations catered for by their employers. This is not the case in China, as there are no paid vacation days. It is also important to note that both nations have the same working hours, set at forty. Therefore, the population must earn whatever they earn with the same amount of work time.
asinta. (2022). Employee Benefits in China. Retrieved from https://www.asinta.com/countries/employee-benefits-in-china/
Martocchio, J. (2017). Strategic Compensation: A Human Resource Management Approach.
NATIONMASTER. (2022). Labor Stats: compare key data on China & United States. Retrieved from https://www.nationmaster.com/country-info/compare/China/United-States/Labor