FlyerTalk Forums - View Single Post - Contract Restaurants???
View Single Post
Old Sep 2, 2012 | 4:03 pm
  #58  
KurtVH
 
Join Date: Apr 2012
Programs: United 1K, Marriott Platinum
Posts: 835
Originally Posted by serioustraveler
All of these are factored into the overall cost of doing business and DO affect employees compensation.

The labor market is just that, a market. Companies compete for employees just as they do for clients. The market is the main determinant for compensation; not the cost of travel or office supplies.


At the end of the day nothing happens in a vacuum,and wildly unpredictable travel expenses means the business has wildly unpredictable expenses.

Not sure what the point is here. Expenses fluctuate; sometimes a great deal. Sometimes increased costs result from increased business activity (e.g. sales) and are far from unwelcome; the converse can also be true. Other times increased costs result from poor management or other negative factors. Those are clearly a different thing. If a company's goal is to make travel expenses a constant on the backs of the employees, it won't retain the ones who have options (unless they're overpaying them, which will be much more detrimental to the company's viability than dealing with some fluctuations in travel costs).

Do you think employers should pay for meals of all their employees? How is it any different or "unpredictable" than paying for meals when they travel?

No, I think employers should pay for business expenses. That means when employees have to eat out because of travel the employer should cover those additional costs. Almost all companies do that by paying actual expenses or paying a per diem rate. Employees who are not traveling aren't incurring those costs in the course of conducting business for the company and thus are not compensated for an expense they didn't incur for the company. This is a very straightforward concept.

At the end of the day a per diem IS part of the overall compensation and a lot of people would rather have cash in their pocket and would prefer to decide what they want to eat.

Per diem for meals and incidental expenses is not a part of compensation. It is reimbursement of expenses the employee incurred on behalf of the company.

It's no different than restaurant employees having to buy their uniforms, flair, shoes, or anything else.

My company reimburses for shoes and other personal protective equipment. Others don't. What's the point?

It's up to potential employees to decide whether or not the expenses of working are worth the job.
Of course it's up to the employee. It's a market. Established companies that try to tell employees that their travel expenses arealready in their compensation are not going to be able to attract and retain top-tier people. (I'm sure there are some one-off examples to the contrary; start-up companies where many of the employees are part owners come to mind. Those exceptions are not what I'm talking about here.)
KurtVH is offline