career paths lesson 1: job basics - tafl

basic necessities

An individual's needs that are essential to their health and welfare such housing, utilities, food, transportation and health care.

career categories

A defined category or group of jobs. Each job within the category requires a similar amount of education, training and experience.

employee

An individual who works for another individual or business and is paid money at regular intervals for the work they perform.

employer

An individual or business that hires workers and pays them money at regular intervals for the work they perform.

hourly employee

A worker whose income is based on an hourly pay rate and the number of hours they actually work.

full-time employee

An employee that works 40 or more hours each week for their employer and is entitled to employment benefits, and possibly fringe benefits.

part-time employee

An employee that works less than 40 hours each week for their employer and may or may not be entitled to employment and fringe benefits.

salaried employee

A worker whose income is based on a negotiated annual amount that is paid in equal installments over the course of the year.

salary

A fixed amount of money paid to an employee by an employer over the course of a year, usually on a monthly or biweekly basis. Salaries are not calculated by the hour.

total compensation

The total amount of money received by an employee from an employer plus the cash equivalent value of the employment benefits received by the employee.

base pay

Base pay represents the minimum amount of pay an employee can expect to receive if they work for the agreed amount of time. This can be a yearly salary or an amount calculated for a normal year's work at an hourly rate.

additional pay

The money or cash equivalent value received by an employee as a result of employee or fringe benefits from their employer.

overtime hours

The hours worked by an hourly employee that exceed the standard 40 hours per week.

overtime pay

The income paid to an hourly employee for working more than the standard 40 hours per week. Typically, overtime pay is 1 ½ times the regular pay.

cash equvalent value

the monetary value of an employment benefit (Employee or Fringe) that is equal to what the employee would have to pay to receive the same benefit if it was not provided by the employer.

employee benefits

The benefits, such as paid vacation time and health insurance, provided by employers to their full-time employees. These benefits are considered additional income or cash equivalent income for the employees.

profit sharing

An incentive-based plan that gives employees a percentage of a company's profits each year. Some profit sharing plans give employees cash, others make a tax-deferred contribution to a retirement account.

fringe benefits

The employment benefits, in addition to regular employee benefits, given to some or all of a company's full-time employees. Stock options and retail discounts are typical fringe benefits.

entry level pay

The amount of pay an individual who is just entering the work force can expect to be paid for performing a specific job in a given location.

entry level job

A job that can be performed by an individual who has just entered the work force, but has the required amount of education and/or training.

average pay

The total money paid to all workers performing the same job divided by the number of workers performing that job.

human capital

The education, knowledge, skills, experience and other attributes a worker acquires before and after they begin working.

automation

The use of computers or robotic equipment to control a manufacturing or other process. Automation often reduces the need for employees due to increased efficiency of the processes involved.

unemployment

The period of time between jobs when an individual is not working. It begins when they lose or quit a job and ends when they begin working at another job.

bureau of labor statistics (BLS)

The government agency responsible for tracking income, expenses and labor statistics in the United States.