While private businesses are compensating employees more than they did 10 years ago, the increase in compensation has been absorbed by employee benefits rather than salary hikes, according to a Forbes report.
In inflation adjusted terms, companies are paying lower wages than they did in 2002. According to the Bureau of Labor Statistics, per-hour cost of wages and salaries incurred by private sector employees was $19.91 in 2002 and $19.85 in 2011.
The increase in total compensation can be traced to a spike in employee benefit contributions, which rose from 27.2 percent of total compensation in 2002 to 29.3 percent in 2011. The money for benefits is going towards increases in health insurance costs, according to the report.
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In inflation adjusted terms, companies are paying lower wages than they did in 2002. According to the Bureau of Labor Statistics, per-hour cost of wages and salaries incurred by private sector employees was $19.91 in 2002 and $19.85 in 2011.
The increase in total compensation can be traced to a spike in employee benefit contributions, which rose from 27.2 percent of total compensation in 2002 to 29.3 percent in 2011. The money for benefits is going towards increases in health insurance costs, according to the report.
Related Articles on Coding, Billing and Collections:
With ICD-10 Coming, What is a Coder's Earning Potential?
Massachusetts Insurers Receive Average 48% Increase in Base Premiums
Physician Orders Account for Nearly 70% of Healthcare Premium Dollar