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CONTENTS
1 The Pay Model 1
Why Should We Care about Compensation? 2
What Is Compensation? 2
Society 2
Stockholders 4
Managers 4
Employees 5
Global Views 5
Forms of Pay 5
Cash Compensation: Base Pay 6
Cash Compensation: Merit Increases and Cost-of-Living Adjustments 6
Cash Compensation: Incentives 6
Long-Term Incentives 7
Benefits: Insurance and Pensions 7
Benefits: Work/Life Programs 7
Benefits: Allowances 7
Total Earnings Opportunities: Present Value of a Stream of Earnings 8
Relational Returns from Work 8
The Organization as a Network of Returns 8
A Pay Model 8
Strategic Compensation Objectives 8
Four Policy Choices 10
Pay Techniques 14
Book Plan 14
Conclusion 14
Chapter Summary 15
Key Terms 15
Review Questions 15
Experiential Exercises 15
Case: The Role of Labour Costs 16
2 Strategy: The Totality of Decisions 18
Similarities and Differences in Strategies 19
Different Strategies within the Same Industry 20
Different Strategies within the Same Company 20
Strategic Choices 20
Support Business Strategy 21
Support HR Strategy 22
The Pay Model Guides Strategic Pay Decisions 23
Stated versus Unstated Strategies 24
Developing a Total Compensation Strategy: Four Steps 24
Step One: Assess Total Compensation Implications 24
Step Two: Map a Total Compensation Strategy 27
Steps Three and Four: Implement Strategy and Reassess the Fit 27
Source of Competitive Advantage: Three Tests 28
Align 28
Differentiate 28
Add Value 28
vi CONTENTS
“Best Fit” versus “Best Practices” 28

Guidance from the Evidence 29
Virtuous and Vicious Circles 29
Conclusion 30
Chapter Summary 30
Key Terms 30
Review Questions 30
Case: Difficult to Copy? 31
PART I
Internal Alignment: Determining the Structure 33
3 Defining Internal Alignment 35
Jobs and Compensation 36
Compensation Strategy: Internal Alignment 36
Supports Organization Strategy 36
Supports Workflow 36
Motivates Behaviour 37
Structures Vary between Organizations 38
Number of Levels 38
Differentials 38
Criteria: Content and Value 38
What Factors Shape Internal Structures? 40
Economic Pressures 40
Government Policies, Laws, and Regulations 41
Stakeholders 41
Cultures and Customs 41
Strategy 41
Technology 42
Human Capital 42
HR Policy 42
Employee Acceptance 43
Cost Implications 44
Strategic Choices in Designing Internal Structures 44
Tailored versus Loosely Coupled 44
Hierarchical versus Egalitarian and Layered versus Delayered Structures 44
Guidance From the Evidence 45
Equity Theory: Fairness 45
Tournament Theory: Motivation and Performance 46
Institutional Theory: Copy Others 46
(More) Guidance from the Evidence 47
Consequences of Structures 47
Efficiency 48
Fairness 48
Compliance 48
Conclusion 48
Chapter Summary 48
CONTENTS vii
Key Terms 49
Review Questions 49
Case: The Orchestra 49
4 Job Analysis 51
Structures Based on Jobs, People, or Both 52
Job-Based Approach: Most Common 53
Why Perform Job Analysis? 53
Job Analysis Procedures 53
What Information Should Be Collected? 55
Job Data: Identification 56
Job Data: Content 56
Employee Data 58
Level of Analysis 59
How Can the Information Be Collected? 59
Conventional Methods 59
Quantitative Methods 61
Who Collects the Information? 61
Who Provides the Information? 61
What about Discrepancies? 61
Job Descriptions Summarize the Data 62
Using Generic Job Descriptions 63
Describing Managerial/Professional Jobs 64
Verify the Description 64
Job Analysis, Globalization and Automation 65
Job Analysis and Susceptibility to Offshoring 65
Job Analysis Information and Comparability across Borders 66
Judging Job Analysis 66
Reliability 66
Validity 66
Acceptability 66
Currency 66
Usefulness 67
A Judgment Call 67
Conclusion 68
Chapter Summary 68
Key Terms 69
Review Questions 69
Case: The Customer Service Agent 69
5 Job-Based Pay Structures and Job Evaluation 71
Job-Based Structures: Job Evaluation 72
Defining Job Evaluation: Content, Value, and External Market Links 73
Job Content and Job Value 73
Linking Content with the External Market 73
Other Perspectives on Job Evaluation 73
“How To”: Major Decisions 74
viii CONTENTS
Establish the Purpose 74

Single Versus Multiple Plans 74
Choose Between Job Evaluation Methods 75
Job Evaluation Methods 76
Ranking 76
Classification 77
Point Method 77
Who Should Be Involved? 84
Evaluating the Usefulness of Results 85
The Design Process Matters 85
Appeals/Review Procedures 85
The Final Result: Job Structure 85
Balancing Chaos and Control 85
Conclusion 86
Chapter Summary 87
Key Terms 87
Review Questions 87
Case: Job Evaluation at Whole Foods 88
6 Person-Based Pay Structures 93
Person-Based Pay Structures: Skill Plans 94
Types of Skill-Based Plans 95
Purpose of the Skill-Based Structure 96
“How To”: Skill Analysis 96
What Information to Collect? 97
Whom to Involve? 98
Establish Certification Methods 98
Outcomes of Skill-Based Pay Plans: Guidance from Research and Experience 98
Person-Based Pay Structures: Competencies 99
Defining Competencies 101
Purpose of the Competency-Based Structure 102
“How To”: Competency Analysis 102
Objective 102
Establish Certification Methods 104
Whom to Involve? 104
Resulting Structure 105
Guidance (and Caution) from the Research on Competencies 107
One More Time: Internal Alignment Reflected in Structures (Person-Based or Job-Based) 107
Administering and Evaluating The Plan 107
Reliability of Job Evaluation Techniques 108
Validity/Usefulness 108
Acceptability 108
Bias in Internal Pay Structures 109
The Perfect Structure 109
Conclusion 111
Chapter Summary 111
Key Terms 112
CONTENTS ix
Review Questions 112

Case: Targeting Teachers’ Pay 112
PART II
External Competitiveness: Determining the Pay Level 114
7 Defining External Competitiveness 117
Compensation Strategy: External Competitiveness 118
Control Costs and Increase Revenues 118
Attract and Retain Talent 118
What Shapes External Competitiveness? 121
Labour Market Factors 121
Labour Demand 122
Marginal Product of Labour 122
Labour Supply 123
Modifications to The Demand Side 124
Compensating Differentials 124
Efficiency Wage 124
Signalling 125
Modifications to the Supply Side 125
Reservation Wage 126
Human Capital 126
Product Market Factors 126
Product Demand 126
Degree of Competition 127
Organizational Factors 127
Industry and Technology 127
Employer Size 127
Employees’ Preferences 127
Organization Strategy 127
Relevant Markets 128
Defining the Relevant Market 128
Competitive Pay Policy Alternatives 128
What Difference Does the Pay Level Policy Make? 129
Pay with Competition (Match) 129
Lead Policy 129
Lag Policy 130
Different Policies for Different Employee Groups 130
Pay Mix Strategies 130
Pitfalls of Pies 131
Consequences of Pay Level and Pay Mix Decisions 133
Conclusion 133
Chapter Summary 133
Key Terms 134
Case: Northern Software 135
x CONTENTS
8 Designing Pay Levels, Pay Mix, and Pay Structures 136

Major Decisions 137
Specify Competitive Pay Policy 138
The Purpose of a Compensation Survey 138
Adjust Pay Level—How Much to Pay? 138
Adjust Mix—What Pay Forms? 138
Adjust Pay Structure 138
Study Special Situations 138
Estimate Competitors’ Labour Costs 138
Select Relevant Market Competitors 139
Fuzzy Markets 140
Design the Compensation Survey 141
Who Should be Involved? 141
How Many Employers to Include? 141
Which Jobs to Include? 142
Interpret Survey Results and Construct a Market Pay Line 145
Verify Data 146
Statistical Analysis 148
Update the Survey Data 150
Construct a Market Pay Line 150
Combine Internal Structure and External Market Rates 150
From Policy to Practice: The Pay Policy Line 151
From Policy to Practice: Grades and Ranges 152
Develop Pay Grades 152
Establish Range Midpoints, Minimums, and Maximums 153
Overlap 153
Why Bother with Grades and Ranges? 154
From Policy to Practice: Broadbanding 154
Balancing Internal and External Pressures: Adjusting the Pay Structure 157
Reconciling Differences 157
Market Pricing 157
Conclusion 158
Chapter Summary 158
Key Terms 159
Case: Calculating Pay Ranges 159
Appendix 8-A: Calculating a Market Line Using Regression Analysis 160
9 Employee Benefits 161
Introduction to Employee Benefits 162
Why the Growth in Employee Benefits? 163
Government Impetus 163
Unions 163
Employer Impetus 163
Cost-Effectiveness of Benefits 164
The Value of Employee Benefits 164
Key Issues in Benefits Planning, Design, and Administration 164
CONTENTS xi
Benefits Planning and Design Issues 164

Administration Issues 165
Factors Influencing Benefit Planning 166
Employer Factors 166
Employee Factors 168
Administering the Benefits Program 168
Communication 168
Claims Processing 169
Cost Containment 169
Types of Benefits 170
Legally Required Benefits 170
Retirement and Savings Plans 174
Life Insurance 176
Medical Insurance 176
Income Security Plans 177
Pay for Time Not Worked 177
Other Benefits 177
Employee Assistance Plans (EAPs) 177
Childcare Services 178
Eldercare Services 178
Flexible Benefit Plans 178
Conclusion 179
Chapter Summary 180
Key Terms 180
Case: Lamps Plus 181
PART III
Employee Contributions: Determining Individual Pay 184
10 Pay for Performance: Performance Appraisal and Plan Design 186
What Behaviours Do Employers Care About? Linking Organizational Strategy
to Compensation and Performance Management 187
What Does it Take to Get These Behaviours? What Theory Says 189
What Does it Take to Get These Behaviours? What Practitioners Say 192
Total Reward System: Other Rewards Besides Money Influence Behaviour! 192
Does Compensation Motivate Behaviour? 195
Do People Join a Firm Because of Pay? 195
Do People Stay in a Firm (or Leave) Because of Pay? 196
Do Employees More Readily Agree to Develop Job Skills Because of Pay? 196
Do Employees Perform Better on Their Jobs Because of Pay? 196
The Role of Performance Appraisals in Compensation Decisions 197
Strategies to Better Understand and Measure Job Performance 198
Strategy One: Improve Appraisal Formats 198
Strategy Two: Select the Right Raters 203
Strategy Three: Understand How Raters Process Information 204
Strategy Four: Train Raters to Rate More Accurately 206
xii CONTENTS
Putting it All Together: The Performance Appraisal Process 206

Designing a Pay-for-Performance Plan 207
Efficiency 207
Fairness 208
Compliance 208
Linking Pay with Subjectively Appraised Performance 208
Conclusion 209
Chapter Summary 209
Key Terms 210
Case: Burger Boy 211
11 Pay-for-Performance Plans 214
What is a Pay-for-Performance Plan? 214
Pay-for-Performance Plans: Short-Term 215
Merit Pay 215
Lump-Sum Bonuses 218
Individual Spot Awards 218
Individual Incentive Plans 218
Individual Incentive Plans: Advantages and Disadvantages 220
Group Incentive Plans 221
Challenges with Group Incentive Plans 222
Types of Group Incentive Plans 223
Gain-Sharing Plans 223
Profit-Sharing Plans 225
Earnings-at-Risk Plans 226
Group Incentive Plans: Advantages and Disadvantages 226
Comparing Individual and Group Incentive Plans 227
The Choice between Individual and Group Incentive Plans 229
Pay-for-Performance Plans: Long-Term 229
Broad-Based Stock Option Plans (BBOPs) 229
Employee Stock Ownership Plans (ESOPs) 229
Compensation of Special Groups 230
Supervisors 230
Corporate Directors 231
Executives 231
Professional Employees 234
Sales Staff 236
Contingent Workers 238
Conclusion 239
Chapter Summary 239
Key Terms 239
Case: Pilots Pay 240
CONTENTS xiii
PART IV
Managing the System 242
12 The Roles of Governments and Unions in Compensation 244
Government as Part of The Employment Relationship 245
Demand for Labour 245
Supply of Labour 245
Employment Standards Acts 246
Minimum Wage 246
Paid Vacation 247
Paid Holidays 247
Standard Hours of Work and Overtime Pay 249
Leaves 249
Pay on Termination of Employment 249
Minimum Age of Employment 249
Equal Pay for Equal Work by Men and Women 249
Human Rights Laws 250
The Gender Wage Gap and Pay Equity Legislation 250
Reasons for the Gender Wage Gap 251
Pay Equity Legislation 253
How Pay Equity Works 253
The Impact of Unions on Wage Determination 255
Union Impact on General Wage and Benefit Levels 255
Union Impact on the Wage Structure 256
Union Impact on Non-union Firms: The Spillover Effect 256
Union Impact on Compensation Policies and Practices 256
Unions and Alternative Reward Systems 258
Conclusion 258
Chapter Summary 259
Key Terms 259
Case: From Barista to Manager 260
13 Compensation Budgets and Administration 261
Managing Labour Costs 262
Number of Employees and Hours Worked 262
Controlling Average Cash Compensation 264
The Top-Down Approach 264
The Bottom-Up Approach 266
Controlling Average Benefit Cost 267
Ethics: Managing or Manipulating? 267
Embedded Controls 267
Communication: Managing the Message 269
What to Communicate 271
Pay: Change Agent in Restructuring 272
Structuring the Compensation Function and Its Roles 272
Centralization—Decentralization 272
xiv CONTENTS
Flexibility within Corporate-wide Principles 272

Re-engineering and Outsourcing 273
Balancing Flexibility and Control 273
Compensation Enterprise Systems 273
Conclusion 274
Chapter Summary 274
Key Terms 274
Case: Two Harbours Teachers 275
Appendix: International Pay Systems 277

The Global Context 278
The Social Contract 278
Centralized–Localized Decision-Making 279
Culture 280
Is Culture a Major Constraint on Compensation? 281
Trade Unions and Employee Involvement 282
Ownership and Financial Markets 282
Managerial Autonomy 282
Comparing Costs 283
Cost of Living and Purchasing Power 283
Comparing Systems 283
The Total Pay Model: Strategic Choices 284
National Systems: Comparative Mindset 285
Japanese Traditional National System 285
German Traditional National System 287
Strategic Comparisons: Japan, Germany, Canada 288
Evolution and Change in Traditional Japanese and German Models 290
Strategic Market Mindset 290
Localizer: “Think Global, Act Local” 290
Exporter: “Headquarters Knows Best—One Size Fits All” 290
Globalizer: “Think and Act Globally and Locally” 290
Expatriate Pay 291
Elements of Expatriate Compensation 292
The Balance Sheet Approach 293
Expatriate Systems’ Objectives? Quel Dommage! 295
Borderless World → Borderless Pay? Globalists 295
Conclusion 296
Endnotes EN-1
Glossary GL-1
Sources SO-1
Name Index IN-1
Subject Index IN-3
PREFACE
Pay is a very important topic for a lot of us. It helps determine our economic status and reflect how much we are being
valued by the organizations we work for. Compensation is also uniquely important in organizations because it typically
represents the single largest operating cost in running an organization, especially in those organizations where employee
skills or human capital are the source of competitive advantage (e.g., Google/Alphabet, Facebook, investment banking, law,
accounting and consulting firms, professional sports teams, universities). Compensation is also important because employees
regularly name it as the most important factor that goes into their decision of whether to take a job or not. Compensation
also plays a major role in influencing what employees choose to do on the job once they are hired: how and where they direct
their efforts, the goals they pursue, how cooperative and flexible they are, and how ethical they are, etc. These all add up to
determine how efficient, innovative, customer-focused, and profitable an organization is over time. An organization that pays
too much, pays too little, and/or pays for the wrong things puts the company, its investors, and its employees at risk. On the
other hand, designing and executing an effective compensation strategy can play a key role in great shared success.
After you have read this book, you will also better understand that what you pay for also matters. Many years ago, when
Green Giant discovered too many insect parts in the pea packs from one of its plants, it designed a bonus plan that
paid people for finding insect parts. Green Giant got what it paid for: insect parts! Innovative Green Giant employees
brought insect parts from home to add to the peas just before they removed them and collected the bonus.
These problems are global. A British telephone company paid a cash bonus based on how fast operators completed
requests for information. Some operators discovered that the fastest way to complete a request was to give out a wrong
number or—even faster—just hang up on the caller. Conclusion: What you pay for matters.
After you have read this book, you will also learn that how you pay also matters. Motorola ended its old-fashioned pay
system that employees said guaranteed a raise every six months as long as you were still breathing. The new system paid
for learning new skills and working in teams. Sound better? It wasn’t. Employees resented those team members who
went off for six weeks of training at full pay while the remaining team members picked up their slack. Motorola was
forced to get rid of its new-fashioned system, too.
Compensation is a powerful tool that has major consequences for the success or failure of an organization. In this book,
we strive to cull beliefs from facts, wishful thinking from demonstrable results, and opinions from research. Yet, when all
is said and done, managing compensation is part science, but also part art.
This sixth Canadian edition continues to respond to the demand on the part of Canadian faculty and students for a
Canadian version that offers a unique perspective on compensation.
The text focuses on the strategic choices in managing compensation. These choices, which confront managers in Canada
and around the world, are introduced in the pay model in Chapter 1. This model provides an integrating framework used
throughout the book. Major compensation issues are discussed in the context of current theory, research, and practice.
These practices illustrate new developments as well as established approaches to compensation decisions.
Each chapter ends with a set of review questions and experiential exercises. The case study at the end of each chapter
asks students to apply the concepts and techniques discussed in the chapter.
WHAT’S NEW
All the chapters of this edition have been revised. This edition reinforces our conviction that, beyond how much you pay,
what you pay for and how people are paid really matters. Managing pay means ensuring that the right people get the
right pay for achieving an organizations’ strategic goals in the right way.
ORGANIZATION OF THE CANADIAN EDITION

Compensation, sixth Canadian Edition, is divided into four parts:
1. Part I: Internal Alignment: Determining the Structure

2. Part II: External Competitiveness: Determining the Pay Level
3. Part III Employee Contributions: Determining Variable Pay
4. Part IV Managing the System
xvi PREFACE
Each chapter in these four parts (13 chapters in total) is interspersed with additional material provided to supplement
the chapter’s contents and provide both context and relevance, as follows:
The Pay Model: The unique Pay Model around which the text is based is introduced up front and is integrated throughout
all subsequent chapter discussions.
EXHIBIT I.1 The Pay Model
STRATEGIC STRATEGIC
TECHNIQUES
POLICIES OBJECTIVES
Job Job Evaluation/ INTERNAL

INTERNAL ALIGNMENT
Analysis Descriptions Certification STRUCTURE
EFFICIENCY
• Performance
• Quality
• Customers
and
C
EXTERNAL COMPETITIVENESS ER
Market
Definitions
Surveys Policy Lines
PAY
STRUCTURE
Stockholders
• Costs

FAIRNESS
eeb h
Seniority- Performance Merit
entitlemen
EMPLOYEE CONTRIBUT ONS return ntheirin
Based Based
stm
Guidelines
INCENTIVE
r r wa
PROGRAMS

COMPLIANCE
on ndrela

MANAGEMENT Costs Communications Change EVALUATION

andpa
Key Terms are highlighted polic type
in boldface line in
. each
heincentiveprog
chapter, and aamt chniqu
list of them sis provided
ssociatedw th end
at the ont ibutio saresenior
of the chapter and
in the Glossary.
KEY TERMS
allowances relationalreturns
compensation salary
cost-of-livingadjustment totalrewards
externalcompetitiveness totalcompensation
incentives(variablepay) wage
internalalignment work/lifeprograms
meritincreases

PREFACE xvii

t o j e e
Exhibits are interspersed throughout the text to illustrate concepts and provide a visual framework for students.

o anem
EXHIBIT 1.1loy e e io
Gender Wage Gap* in Median Earnings of Full-Time Employees

35 34.6
lude
2017
30

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24.5
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25
2017
ra 20
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2017
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*The gender wag gap is defined as the difference between median Un

earnings of men and women relative to median
ingadjustment tota rewards
earnings of men. Data refer to full-time employees on the one hand and to self-employed on the other.
etiti t l i n
c v a le )
Review Questions and Experiential
Exercises
are suggested
at the end
of each
chapter.
These
real-life
exercises
require the
t ali l
applicationi iof learned concepts

and

techniques.

REVIEW
QUESTIONS

1. Howdodifferingperspectivesaffectourviewsofcompensation?
2. Refertotheimagethatopensthischapterandcategorizethevariousitemsbasedonwhatthefollowingstakeholder
groupsmayrefertoascompensation:employee,employer,society,andstockholders.
3. Discussfivedifferentformsofpaythatonemightexpecttoreceivefromwork.
4. Whatarethefourpolicyissuesinthepaymodel?Andwhatarethestrategicobjectivesofapaysystem?
EXPERIENTIAL EXERCISES
1. Whatisyourdefinitionofcompensation?Whichmeaningofcompensationseemsmostappropriatefroman
employee’spointofview—return,reward,orentitlement?Compareyourideaswithsomeonewhohasmore
experience,withsomeonefromanothercountry,andwithsomeonefromanotherfieldofstudy.
2. Listalltheformsofpayyoureceivefromwork.Compareyourlisttosomeoneelse’s.Explainanydifferences.
3. Whatisyouridealtotalcompensationpackageuponyourcompletionoftheprogramatyourcurrentinstitution?
Doyouthinktheseareachievable?Whataresomeofthethingsyoucanofferyouremployer?
4. Gotothewebsiteofacompanythatyouwanttoworkin.Findoutwhatkindofbenefitsitofferstheiremployees.
Learning Outcomes have been highlighted at the beginning of each chapter, and the Chapter Summary relating to these
learning objectives is included at the end of the chapter.

xviii PREFACE
Learning Outcomes
LO1 Definethetermcompensation.
LO2 Describehowcompensationisvieweddifferentlybysociety,stock-
holders,managers,andemployeesinCanadaandaroundtheworld.
LO3 Discussmajorcomponentsoftotalrewards.
LO4 Identifyandexplainthestrategicobjectivesofcompensation.
LO5 Describethefourstrategicpoliciesinthepaymodelandthe
techniquesassociatedwiththem.
CHAPTER SUMMARY
1. Employeebenefitshavebeenincreasingincostforthepastfewdecadesandnowconstituteasignificantamountof
compensationexpenseinallCanadianorganizations,ontheorderofupto40%ofpayroll.
2. Keyissuesinbenefitsplanninganddesignare(1)theroleofbenefitsinacompensationpackage,suchasattracting,
retainingormotivatingemployees;(2)externalcompetitivenesswithbenefitsofferedbyotherorganizations;(3)ben-
efitsadequacytomeettheneedsofemployeesandtheirfamilieswhenfacingseriousmedicalproblems,retirement,
orotherlifeissues;and(4)cost-effectiveness.Keyadministrativeissuesinclude(1)whoshouldbeincludedinthese
plans,(2)thelevelofflexibilityinemployeechoiceregardingtheirbenefits,and(3)employee–employercostsharing.
3. Threeimportantfunctionsinbenefitsadministrationarebenefitcommunication,claimsprocessing,andcost
containment.
4. LegallyrequiredbenefitsinCanadainclude:Workers’Compensation,theCanada/QuebecPensionPlan,Employ-
mentInsurance,government-sponsoredhealthcareplans,andbreaks/vacation/leaves.Workers’Compensationpro-

videscompensationforinjuriesanddiseasesthatariseoutof,andwhileinthecourseof,employment.TheCanada/
QuebecPensionPlanisaplanthatprovidesacertainlevelofincomeforemployedCanadiansupontheirretirement.
EmploymentInsuranceprovidesworkerswithtemporaryincomereplacementasaresultofemploymentinterrup-
tionsduetocircumstancessuchasworkshortages,sickness,maternityleave,andsoon.Respectiveemployment
Sec
standardslegislationalsorequiresemployerstoprovidetheiremployeeswithbreaks,vacationdays,andleaves.
5. Inadditiontothelegallyrequiredbenefits,employersmaychoosetoprovidetheiremployeeswithadditionalbenefits,
someofwhicharepaidforbyemployers,whileothersmayrequirecontributionsfrombothemployersandemployees.

A Web16
Exercise for each chapter can
C A TER 1 T P Y ODE be found on the Compensation
Connect
site.
The Web
exercise
will familiarize
students with the wealth of compensation-related material available on the Internet. Also included at the end of each

chapter is a comprehensive
Case requiring
application
of
the chapter material.

CASE
The Role of Labour Costs

Towhatextentiscompensationanimportantcauseofcompanysuccess(orlackofsuccess)intheretailelectronics

industry?ConsiderBestBuy,anAmericanmultinationalconsumerelectronicsretailerheadquarteredinRichfield,

Minnesota.ItwasoriginallyfoundedbyRichardM.SchulzeandJamesWheelerin1966asanaudiospecialtystore
calledSoundofMusic.In1983,itwasre-brandedunderitscurrentnamewithanemphasisplacedonconsumer

electronics.FutureShopwasaCanadianelectronicsstorechain.Itwasestablishedin1982byHassanKhosrowshahi.

By1990,thechainhadbecomeCanada’slargestretailerofcomputerandconsumerelectronics.InNovember2001,

BestBuyacquiredFutureShopfor$580million.

PREFACE xix
AWARD-WINNING TECHNOLOGY
McGraw Hill Connect® is an award-winning digital teaching and learning solution that empowers students to achieve bet-
ter outcomes and enables instructors to improve efficiency with course management. Within Connect, students have access
to SmartBook®, McGraw Hill’s adaptive learning and reading resource. SmartBook prompts students with questions based
on the material they are studying. By assessing individual answers, SmartBook learns what each student knows and identi-
fies which topics they need to practice, giving each student a personalized learning experience and path to success.
Connect’s key features also include analytics and reporting, simple assignment management, smart grading, the oppor-
tunity to post your own resources, and the Connect Instructor Library, a repository for additional resources to improve
student engagement in and out of the classroom.
Instructor resources for Compensation, 6th Canadian Edition:

• Instructor’s Manual
• Test Bank
• Microsoft® PowerPoint® Presentations
• Manager’s Hot Seat Videos
INSTRUCTOR’S MANUAL
The Instructor’s Manual, prepared by Jeff Young, Mount Saint Vincent University, contains a short topic outline of the
chapter and a listing of learning objectives, a detailed lecture outline, answers to review questions and experiential exer-
cises, summary of chapter content, and a case discussion outline.
COMPREHENSIVE TEST BANK

Within Connect, instructors can easily create automatically graded assessments from a comprehensive test bank featuring
multiple question types and randomized question order. The Test Bank was prepared by Ian Anderson, Algonquin College.
MICROSOFT® POWERPOINT® PRESENTATIONS

The PowerPoint slides for each chapter, prepared by text author Margaret Yap, is built around the learning objectives
and includes many of the exhibits from the textbook, as well as additional slides that support and expand the text discus-
sions. Slides can be modified by instructors with PowerPoint®.
MANAGER’S HOT SEAT VIDEOS

This resource allows students to watch real managers apply their years of experience to management and organizational
behaviour issues. Students assume the role of the manager as they watch the video and then answer multiple-choice
questions following the segment. The Manager’s Hot Seat Videos are ideal for group or classroom discussions.
WRITING ASSIGNMENTS
The Writing Assignment tool delivers a learning experience to help students improve their written communication skills
and conceptual understanding. As an instructor you can assign, monitor, grade, and provide feedback on writing more
efficiently and effectively.
TEST BUILDER
Available within Connect, Test Builder is a cloud-based tool that enables instructors to format tests that can be printed
or administered within a Learning Management System. Test Builder offers a modern, streamlined interface for easy
content configuration that matches course needs, without requiring a download.
Test Builder allows you to:

• access all test bank content from a particular title
• easily pinpoint the most relevant content through robust filtering options
xx PREFACE
• manipulate the order of questions or scramble questions and/or answers

• pin questions to a specific location within a test
• choose the layout and spacing
• add instructions and configure default settings
Test Builder provides a secure interface for better protection of content and allows for just-in-time updates to flow dir-
ectly into assessments.
REMOTE PROCTORING & BROWSER-LOCKING CAPABILITIES
New remote proctoring and browser-locking capabilities, hosted by Proctorio within Connect, provide control of the
assessment environment by enabling security options and verifying the identity of the student.
Seamlessly integrated within Connect, these services allow instructors to control students’ assessment experience by
restricting browser activity, recording students’ activity, and verifying students are doing their own work.
Instant and detailed reporting gives instructors an at-a-glance view of potential academic integrity concerns, thereby
avoiding personal bias and supporting evidence-based claims.
ACKNOWLEDGMENTS
Many people have contributed to our understanding of compensation and to the preparation of this textbook. In particu-
lar, we thank the following instructors, whose review and comments helped guide us in the writing of this edition:
Nicole Vincic, Mohawk College

Cheryl Berst, Algonquin College
Dorothy Milardovic, Conestoga College
Ted Mock, Seneca College & University of Toronto
Wendy Carroll, Saint Mary’s University
Finally, we thank the McGraw Hill publishing team—Amy Clarke-Spencley, Portfolio Manager; Krisha Escobar, Content Developer;
Jessica Barnoski, Supervising Editor; Karen Hunter, Permissions Editor; and Dina Theleritis, Copy Editor—for their dedicated
work in this collaborative undertaking.
Chapter 1
THE PAY MODEL

defined benefit plans
RRSP sales compensation

profit sharing plans
Compensation
higher profitability
loyalty
EI dental
overtime
incentives
pay raises
holidays stock options
pay RSUs increase market share vacation benefits
wages tuition assistance
retention bonuses
vision
allowances
short term disability recruitment promotion recognition
gain sharing plans
attraction motivation pension merit increase
salary
higher productivity
spot awards employee discount CPP commission
paid time off
workers compensation better engagement

extended healthcare defined contribution plans
long term disability
Learning Outcomes
LO1 Define the term compensation.
LO2 Describe how compensation is viewed differently by society, stock-
holders, managers, and employees in Canada and around the world.
LO3 Discuss major components of total rewards.
LO4 Identify and explain the strategic objectives of compensation.
LO5 Describe the four strategic policies in the pay model and the
techniques associated with them.
2 CHAPTER 1: THE PAY MODEL
WHY SHOULD WE CARE ABOUT COMPENSATION?

Why care about compensation? Perhaps you find life goes more smoothly when there is at least as much money coming
in as going out. Perhaps you would like to solve the mystery of why you or people you know get paid the way they do.
Why was the average hourly total compensation (i.e., wages plus benefits) in manufacturing $25 in the United States, but
$16 in Korea and $3 in Mexico? Why did workers at Chrysler in the United States received total compensation of about
$76 per hour, whereas U.S. workers at Toyota got $48 per hour? It may be justified to pay your workers more than your
competitors do if the company has higher productivity or produces more innovative and higher-quality products. But this
was not the case for Chrysler. It actually went bankrupt in 2009 but managed to remain in business after selling 20% of
the company to Fiat (an Italian auto company) and receiving a U.S. federal government bailout of $6.6 billion. Specifical-
ly, Chrysler took steps (as part of its bankruptcy plan) to bring its hourly labour costs down to about $49 more recently.1
General Motors (GM), like Chrysler, has also paid its workers well for decades—too well perhaps for what it received in
return. In 1970, GM had 150 U.S. manufacturing plants and 395,000 hourly workers. In sharp contrast, GM now has
35 U.S. manufacturing plants and 57,000 hourly workers.2 In June 2009, GM, like Chrysler, had to file for bankruptcy
(avoiding it for a while thanks to loans from the U.S. government—i.e., U.S. taxpayers). Not all of GM’s problems were
compensation related. Of course, building vehicles that consumers did not want was also a problem. But having labour
costs higher than the competition, without corresponding advantages in efficiency, quality, and customer service, does
not seem to have served GM or its stakeholders well. Its stock price peaked at $93.62 per share in April 2000. Its market
value was about $60 billion in 2000. That shareholder wealth was wiped out in bankruptcy. Think also of the billions of
dollars that U.S. taxpayers had to put into GM, the hundreds and thousands of jobs that have been lost, and the effects
on the communities that have lost those jobs.
On the other hand, Nucor, the largest producer of steel in the United States, pays its workers very well, relative to what
other companies inside and outside the steel industry pay. But the company also has much higher productivity than is
typical in the steel industry. The result: both the company and its workers do well. Similarly, Google and Facebook also
pay their workers well. So far, that seems to have worked—their high pay levels allow them to be very selective in who
they hire and who they keep, a strategy that has helped them foster growth and innovation.
How people are paid affects their behaviour at work, which affects an organization’s chances of success.3 For most
employers, compensation is a major part of the total cost of running a business, and often it is the single largest part
of operating cost. These two facts together mean that well-designed compensation systems can help an organization
achieve and sustain competitive advantage.4 On the other hand, as we have seen recently, poorly designed compensation
systems can likewise play a major role in undermining organization success.
LO1 WHAT IS COMPENSATION?

How people view compensation affects how they behave at work. It does not mean the same thing to everyone. Your view
probably differs depending on whether you look at compensation from the perspective of a member of society, a stock-
holder, a manager, or an employee. The following is a brief discussion of these various perspectives on compensation.
LO2 Society
Some people view pay as a measure of justice. For example, a comparison of earnings of women with those of men
highlights inequities in pay decisions. In 2016, women workers in Canada who work full-time earn an average of $0.75
for every dollar earned by men working full-time.5 Economists have identified a number of contributing factors to wage
determination, including human capital (work experience, education, and tenure), demographic characteristics (marital
status, having children living at home), and job characteristics (industry, size of establishment, and type of work). There
are a few observations of what may have contributed to the gender wage gap: that women are more likely to study health
and education, whereas men are more likely to study engineering and other technology fields; that women are more will-
ing than men to adjust their work location and hours to take care of young children and elderly parents, and to do most
if not all of the “unpaid” housework; and, finally, that nearly one in three women work in sales and service occupations,
whereas men are likely to work in construction trades, in transport, and as equipment operators.6
How does Canada do, relative to other countries? Exhibit 1.1 shows the gender gap in median earnings of full-time em-
ployees working in various OECD countries. Canada is definitely doing better than countries like Korea and Japan, but
worse than the United Kingdom, France, and Italy. The gender wage gap is certainly a global concern.
CHAPTER 1: THE PAY MODEL 3
EXHIBIT 1.1 Gender Wage Gap* in Median Earnings of Full-Time Employees
35 34.6
2017
30
24.5
Gender wage gap (%)
25
2017
20 18.2 18.2
16.2 16.4 2017
14.8 15.1 2017
15 13.5 14.0 2017 2018
2016 2018
11.7 2017 2018
9.9 2018
10
6.9 7.3 2014
5.6
2014 2017
5
2016
0
ly
ey
en
ce
lia
al
nd
ic
es
da
an
ea
an
ic
Ita
bl
ot
do
tra
at
rk
an
r
na
ed
la
ex
Ko
pu
m
T
Ja
St
er
Tu
ng
s
Fr
Ca
D-
Sw
er
Au
Re
itz
d
Ki
EC
ite
Sw
d
O
ec
Un
ite
Cz
Un
*The gender wage gap is defined as the difference between median earnings of men and women relative to median
earnings of men. Data refer to full-time employees on the one hand and to self-employed on the other.
Job losses (or gains) within a country over time are partly a function of relative labour costs (and productivity) across
countries. Canadians worry about losing manufacturing jobs to Mexico, China, and even the United States.7 (Increasingly,
white-collar work in areas like finance, computer programming, and legal services are also being sent overseas.) Exhibit 1.2
shows the hourly compensation (wages and benefits) for a few countries around the world. Hourly compensation for
production workers in Mexico is $3.91, as compared to $30.08 in Canada. China’s estimated $5.45 per hour is about 18%
of the Canadian rate. However, the value of what is being produced also needs to be taken into consideration. Productivity
EXHIBIT 1.2 H
ourly Compensation Costs for Production Workers in Manufacturing
and Economy-Wide Productivity (GDP) per Employed Person),
in U.S. Dollars
HOURLY COMPENSATION COST PRODUCTIVITY (GDP PER EMPLOYEE)

Canada $30.08 86,437
China 5.45 27,196
Mexico 3.91 38,306
Czech Republic 10.71 65,467
United States 39.03 113,922
Germany 43.18 89,309
Source: “Hourly Compensation Cost: The Conference Board. International Comparisons of Hourly Compensation Costs in
Manufacturing, 2016,” February 16, 2018. Productivity (projected for 2017): The World Bank, http://data.worldbank.org/
indicator/SL.GDP.PCAP.EM.KD, retrieved March 15, 2018.
Notes: Compensation includes wages and benefits. The most recent Conference Board compensation cost was $4.11 (in
2013) for China. The 2016 estimate for China was obtained by inflating the Conference Board estimates based on data on
annual average wage growth in urban units from the China Statistical Yearbook, Table 4-12, National Bureau of Statistics
of China. Productivity is gross domestic product (GDP), in constant 2011 purchasing power parity (PPP) $, divided by total
employment in the economy. Purchasing power parity GDP is GDP converted to 2011 constant international dollars using
PPP rates. (As such, these GDP per employee numbers are higher than past estimates using 1990 constant international
dollars using PPP rates.) An international dollar has the same purchasing power over GDP that a U.S. dollar has in the
United States.
4 CHAPTER 1: THE PAY MODEL
(as measured in gross domestic product [GDP] per employee) in China is 31% of the Canadian level. Finally, if low wages
are the goal, there always seems to be somewhere that pays less. Some companies (e.g., Coach) are now moving work out
of China because its hourly wage, especially after recent increases,8 is not as low as countries like Vietnam, India, and the
Philippines. On the other hand, companies like FoxConn, which builds iPhones and iPads for Apple, maintain their opera-
tions in China. In addition, Foxconn has also recently announced it will build a major new presence in southeast Wiscon-
sin. Reasons include proximity to the U.S. market, as well as major incentives provided by the State of Wisconsin.
Stockholders
From the perspective of the stockholders (or shareholders), those who provide equity for the operation of businesses,
compensation matters. For example, some stockholders believe that using stock (shares of the company) to pay employ-
ees creates a sense of ownership that will improve performance (think WestJet), which will in turn increase stockholder
wealth. But others argue that granting employees too much ownership dilutes stockholder wealth and sometimes may
not incentivize the behaviour as one originally intends. For example, Google’s stock plan cost the company $600 million
in its first year of operation. So people who buy Google stock (the stockholders) are betting that this $600 million plan
will motivate employees to generate more than $600 million in extra stockholder wealth.
Stockholders also have an interest in executive compensation. Compensation should supposedly be tied to performance.
To the degree that the interests of executives are aligned with those of stockholders or shareholders (e.g., by paying
executives on the basis of company performance measures such as shareholder return), the hope is that company per-
formance will be better. There is debate, however, about whether executive pay and company performance are strongly
linked.9 In the absence of such a linkage, concerns arise that executives might somehow use their influence to obtain
high pay without necessarily performing well.
It is therefore an ongoing challenge to ensure that executives act in the best interests of the organization and, hence,
in the best interests of the shareholders. For example, leading up to the meltdown in the financial services industry in
2008, top executives at Bear Stearns and Lehman Brothers regularly exercised stock options and sold stock during the
2000-2008 period. One estimate is that these stock-related gains plus bonus payments generated $1.4 billion for the
top five executives at Bear Stearns and $1 billion for those at Lehman Brothers during that period. “Thus, while the
long-term shareholders were largely decimated, the executives’ performance-based compensation kept them in positive
territory.” The problem here is that shareholders paid a huge penalty for what appears to have been overly aggressive
risk-taking by executives, but the executives, in contrast, did quite well because of “their ability to claim large amounts of
compensation based on short-term results.”10
Managers
From the perspective of the managers, compensation directly influences their success in two ways. First, it is a major
expense that must be managed. Competitive pressures, both global and local, force managers to consider the affordability
of their compensation decisions. Studies show that in many enterprises, labour costs account for more than 50% of total
costs. In some industries, such as financial or professional services, or in education and government, this figure can be even
higher. However, even within an industry (e.g., automotive manufacturing, financial services), labour cost as a percentage
of total costs varies among individual firms. For example, small neighbourhood grocery stores, with labour costs between
15% and 18%, have been driven out of business by supermarkets that delivered the same products at a lower cost of labour
(9% to 12%). Supermarkets today are losing market share to warehouse club stores, such as Costco and Walmart, which
enjoy an even lower cost of labour (4% to 6%), even though Costco pays above-average wages in the industry.
In addition to seeing pay as a major expense that has to be managed, a manager uses it to influence employees’ attitudes
and behaviours and to improve organizational performance. The amount and the way people are paid affects the quality
of their work, their attitude toward customers, their willingness to be flexible or learn new skills, or suggest innovations,
and even their interest in unions or pursuing legal action against their employer. As an example, Costco and Walmart
both provide a unique shopping experience to their customers. Walmart competes on low prices, while Costco competes
not only on low prices but also with a mix that includes more high-end products aimed at a higher customer income
segment. To compete in this segment, Costco appears to have chosen to pay higher wages to its workers, perhaps as a
way to increase its ability to attract and retain a higher-quality workforce.11 Indeed, in a recent annual report, Costco states,
“With respect to expenses relating to the compensation of our employees, our philosophy is not to seek to minimize the
wages and benefits that our employees earn. Rather, we believe that achieving our longer-term objectives of reducing
employee turnover and enhancing employee satisfaction requires maintaining compensation levels that are better than
the industry average for much of our workforce.” By comparison, Walmart states in one of its annual report that they
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Great Britain and her colonies, in a short
representation of the calamitous state of the

enslaved Negroes in the British dominions
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Title: A caution to Great Britain and her colonies, in a short

representation of the calamitous state of the enslaved
Negroes in the British dominions
Author: Anthony Benezet
Release date: June 17, 2022 [eBook #68337]
Language: English
Original publication: United States: None listed, 1784
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*** START OF THE PROJECT GUTENBERG EBOOK A CAUTION

TO GREAT BRITAIN AND HER COLONIES, IN A SHORT
REPRESENTATION OF THE CALAMITOUS STATE OF THE
ENSLAVED NEGROES IN THE BRITISH DOMINIONS ***
A
C A U T I O N
TO
G R E AT B R I TA I N
A N D
H E R C O L O N I E S,
IN A
SHORT REPRESENTATION
OF THE
CALAMITOUS STATE of the
E N S L AV E D N E G R O E S
IN THE
B R I T I S H D O M I N I O N S.
A N E W E D I T I O N.
By A N T. B E N E Z E T.
PHILADELPHIA Printed: LONDON Reprinted
and Sold by J A M E S P H I L L I P S, in
George-Yard, Lombard-Street. 1784.
A
C A U T I O N, &c.
AT a time when the general rights and liberties of mankind, and the
preservation of those valuable privileges transmitted to us from our
ancestors, are become so much the subjects of universal
consideration; can it be an inquiry indifferent to any, how many of
those who distinguish themselves as the Advocates of Liberty,
remain insensible and inattentive to the treatment of thousands and
tens of thousands of our fellow men, who, from motives of avarice,
and the inexorable decree of tyrant custom, are at this very time kept
in the most deplorable state of Slavery, in many parts of the British
Dominions?
The intent of publishing the following sheets, is more fully to make
known the aggravated iniquity attending the practice of the Slave-
Trade; whereby many thousands of our fellow-creatures, as free as
ourselves by nature, and equally with us the subjects of Christ’s
redeeming Grace, are yearly brought into inextricable and barbarous
bondage; and many, very many, to miserable and untimely ends.
The Truth of this lamentable Complaint is so obvious to persons of
candour, under whose notice it hath fallen, that several have lately
published their sentiments thereon, as a matter which calls for the
most serious consideration of all who are concerned for the civil or
religious welfare of their Country. How an evil of so deep a dye, hath
so long, not only passed uninterrupted by those in Power, but hath
even had their Countenance, is indeed surprising; and charity would
suppose, must in a great measure have arisen from this, that many
persons in government, both of the Clergy and Laity, in whose power
it hath been to put a stop to the Trade, have been unacquainted with
the corrupt motives which gives life to it, and with the groans, the
dying groans, which daily ascend to God, the common Father of
mankind, from the broken hearts of those his deeply oppressed
creatures: otherwise the powers of the earth would not, I think I may
venture to say could not, have so long authorized a practice so
inconsistent with every idea of liberty and justice, which, as the
learned James Foster says, Bids that God, which is the God and
Father of the Gentiles, unconverted to Christianity, most daring and
bold defiance; and spurns at all the principles both of natural and
revealed Religion.
Much might justly be said of the temporal evils which attend this
practice, as it is destructive of the welfare of human society, and of
the peace and prosperity of every country, in proportion as it
prevails. It might be also shewn, that it destroys the bonds of natural
affection and interest, whereby mankind in general are united; that it
introduces idleness, discourages marriage, corrupts the youth, ruins
and debauches morals, excites continual apprehensions of dangers,
and frequent alarms, to which the Whites are necessarily exposed
from so great an increase of a People, that, by their Bondage and
Oppressions, become natural enemies, yet, at the same time, are
filling the places and eating the bread of those who would be the
Support and Security of the Country. But as these and many more
reflections of the same kind, may occur to a considerate mind, I shall
only endeavour to shew, from the nature of the Trade, the plenty
which Guinea affords to its inhabitants, the barbarous Treatment of
the Negroes, and the Observations made thereon by Authors of
note, that it is inconsistent with the plainest Precepts of the Gospel,
the dictates of reason, and every common sentiment of humanity.
In an Account of the European Settlements in America, printed in
London, 1757, the Author, speaking on this Subject, says: ‘The
Negroes in our Colonies endure a Slavery more complete, and
attended with far worse circumstances than what any people in their
condition suffer in any other part of the world, or have suffered in any
other period of time: Proofs of this are not wanting. The prodigious
waste which we experience in this unhappy part of our Species, is a
full and melancholy Evidence of this Truth. The Island of Barbadoes
(the Negroes upon which do not amount to eighty thousand)
notwithstanding all the means which they use to encrease them by
Propagation, and that the Climate is in every respect (except that of
being more wholesome) exactly resembling the Climate from
whence they come; notwithstanding all this, Barbadoes lies under a
necessity of an annual recruit of five thousand slaves, to keep up the
stock at the number I have mentioned. This prodigious failure, which
is at least in the same proportion in all our Islands, shews
demonstratively that some uncommon and unsupportable Hardship
lies upon the Negroes, which wears them down in such a surprising
manner; and this, I imagine, is principally the excessive labour which
they undergo.’ In an Account of part of North-America, published by
Thomas Jeffery, printed 1761, speaking of the usage the Negroes
receive in the West-India Islands, he thus expresses himself: ‘It is
impossible for a human heart to reflect upon the servitude of these
dregs of mankind, without in some measure feeling for their misery,
which ends but with their lives.——Nothing can be more wretched
than the condition of this People. One would imagine, they were
framed to be the disgrace of the human species: banished from their
Country, and deprived of that blessing, Liberty, on which all other
nations set the greatest value, they are in a manner reduced to the
condition of beasts of burden. In general a few roots, potatoes
especially, are their food; and two rags, which neither screen them
from the heat of the day, nor the extraordinary coolness of the night,
all their covering; their sleep very short; their labour almost continual;
they receive no wages, but have twenty lashes for the smallest fault.’
A considerate young person, who was lately in one of our West-
India Islands, where he observed the miserable situation of the
Negroes, makes the following remarks: ‘I meet with daily exercise, to
see the treatment which these miserable wretches meet with from
their masters, with but few exceptions. They whip them most
unmercifully, on small occasions; they beat them with thick Clubs,
and you will see their Bodies all whaled and scarred: in short, they
seem to set no other value on their lives than as they cost them so
much money; and are not retrained from killing them, when angry, by
a worthier consideration than that they lose so much. They act as
though they did not look upon them as a race of human creatures,
who have reason, and remembrance of misfortunes; but as beasts,
like oxen, who are stubborn, hardy and senseless, fit for burdens,
and designed to bear them. They will not allow them to have any
claim to human privileges, or scarce, indeed, to be regarded as the
work of God. Though it was consistent with the justice of our Maker
to pronounce the sentence on our common parent, and through him
on all succeeding generations, That he and they should eat their
bread by the sweat of their brow; yet does it not stand recorded by
the same Eternal Truth, That the Labourer is worthy of his Hire? It
cannot be allowed in natural justice, that there should be a servitude
without condition: A cruel endless servitude. It cannot be
reconcileable to natural justice, that whole nations, nay, whole
continents of men, should be devoted to do the drudgery of life for
others, be dragged away from their attachments of relations and
societies, and made to serve the appetites and pleasures of a race
of men, whose superiority has been obtained by an illegal force.’
A particular account of the treatment these unhappy Africans
receive in the West-Indies was lately published, which, even by
those who, blinded by interest, seek excuses for the Trade, and
endeavour to palliate the cruelty exercised upon them, is allowed to
be a true, though rather too favourable representation of the usage
they receive, which is as follows, viz. ‘The iniquity of the Slave-trade
is greatly aggravated by the inhumanity with which the Negroes are
treated in the Plantations, as well with respect to food and clothing,
as from the unreasonable labour which is commonly exacted from
them. To which may be added the cruel chastisements they
frequently suffer, without any other bounds than the will and wrath of
their hard task-masters. In Barbadoes, and some other of the
Islands, six pints of Indian corn and three herrings are reckoned a
full weeks allowance for a working slave, and in the System of
Geography it is said, That in Jamaica the owners of the Negroe-
slaves, set aside for each a parcel of ground, and allow them
Sundays to manure it, the produce of which, with sometimes a few
herrings, or other salt-fish, is all that is allowed for their support.
Their allowance for clothing in the Islands is seldom more than six
yards of osenbrigs each year: And in the more northern Colonies,
where the piercing westerly winds are long and sensibly felt, these
poor Africans suffer much for want of sufficient clothing, indeed some
have none till they are able to pay for it by their labour. The time that
the Negroes work in the West-Indies, is from day-break till noon;
then again from two o’clock till dusk: (during which time they are
attended by overseers, who severely scourge those who appear to
them dilatory) and before they are suffered to go to their quarters,
they have still something to do, as collecting of herbage for the
horses, gathering fuel for the boilers, etc. so that it is often half past
twelve before they can get home, when they have scarce time to
grind and boil their Indian corn; whereby it often happens that they
are called again to labour before they can satisfy their Hunger. And
here no delay or excuse will avail, for if they are not in the Field
immediately upon the usual notice, they must expect to feel the
Overseer’s Lash. In crop-time (which lasts many months) they are
obliged (by turns) to work most of the night in the boiling-house.
Thus their Owners, from a desire of making the greatest gain by the
labour of their slaves, lay heavy Burdens on them, and yet feed and
clothe them very sparingly, and some scarce feed or clothe them at
all, so that the poor creatures are obliged to shift for their living in the
best manner they can, which occasions their being often killed in the
neighbouring lands, stealing potatoes, or other food, to satisfy their
hunger. And if they take any thing from the plantation they belong to,
though under such pressing want, their owners will correct them
severely, for taking a little of what they have so hardly laboured for,
whilst they themselves riot in the greatest luxury and excess.—It is a
matter of astonishment, how a people, who, as a nation, are looked
upon as generous and humane, and so much value themselves for
their uncommon sense of the Benefit of Liberty, can live in the
practice of such extreme oppression and inhumanity, without seeing
the inconsistency of such conduct, and without feeling great
Remorse: Nor is it less amazing to hear these men calmly making
calculations about the strength and lives of their fellow-men; in
Jamaica, if six in ten, of the new imported Negroes survive the
seasoning, it is looked upon as a gaining purchase: And in most of
the other plantations, if the Negroes live eight or nine years, their
labour is reckoned a sufficient compensation for their cost.——If
calculations of this sort were made upon the strength and labour of
beasts of burden, it would not appear so strange; but even then a
merciful man would certainly use his beast with more mercy than is
usually shewn to the poor Negroes.—Will not the groans of this
deeply afflicted and oppressed people reach Heaven, and when the
cup of iniquity is full, must not the inevitable consequence be pouring
forth of the judgments of God upon their oppressors. But, alas! is it
not too manifest that this oppression has already long been the
object of the divine displeasure; for what heavier judgment, what
greater calamity can befall any people, than to become a prey to that
hardness of heart, that forgetfulness of God, and insensibility to
every religious impression; as well as that general depravation of
manners, which so much prevails in the Colonies, in proportion as
they have more or less enriched themselves, at the expence of the
blood and bondage of the Negroes.’
The situation of the Negroes in our Southern provinces on the
Continent, is also feelingly set forth by George Whitfield, in a Letter
from Georgia, to the Inhabitants of Maryland, Virginia, North and
South-Carolina, printed in the Year 1739, of which the following is an
extract: ‘As I lately passed through your provinces, in my way hither,
I was sensibly touched with a fellow-feeling of the miseries of the
poor Negroes. Whether it be lawful for Christians to buy slaves, and
thereby encourage the Nations from whom they are bought, to be at
perpetual war with each other, I shall not take upon me to determine;
sure I am, it is sinful, when bought, to use them as bad, nay worse
than as though they were brutes; and whatever particular exception
there may be, (as I would charitably hope there are some) I fear the
generality of you, that own Negroes, are liable to such a charge; for
your slaves, I believe, work as hard, if not harder, than the horses
whereon you ride. These, after they have done their work, are fed
and taken proper care of; but many Negroes, when wearied with
labour, in your plantations, have been obliged to grind their own
corn, after they return home. Your dogs are caressed and fondled at
your table; but your slaves, who are frequently stiled dogs or beasts,
have not an equal privilege; they are scarce permitted to pick up the
crumbs which fall from their master’s table.—Not to mention what
numbers have been given up to the inhuman usage of cruel task-
masters, who, by their unrelenting scourges, have ploughed their
backs, and made long furrows, and at length brought them even to
death. When passing along, I have viewed your plantations cleared
and cultivated, many spacious houses built, and the owners of them
faring sumptuously every day, my blood has frequently almost run
cold within me, to consider how many of your slaves had neither
convenient food to eat, or proper raiment to put on, notwithstanding
most of the comforts you enjoy were solely owing to their
indefatigable labours.—The Scripture says, Thou shalt not muzzle
the ox that treadeth out the corn. Does God take care for oxen? and
will he not take care of the Negroes also? undoubtedly he will.—Go
to now ye rich men, weep and howl for your miseries that shall come
upon you: Behold the provision of the poor Negroes, who have
reaped down your fields, which is by you denied them, crieth; and
the cries of them which reaped, are entered into the ears of the Lord
of Sabbath. We have a remarkable instance of God’s taking
cognizance of, and avenging the quarrel of poor slaves, 2 Sam. xxi.
1. There was a famine in the days of David three years, year after
year; and David enquired of the Lord: And the Lord answered, It is
for Saul, and for his bloody house, because he slew the Gibeonites.
Two things are here very remarkable: First, These Gibeonites were
only hewers of wood and drawers of water, or in other words, slaves
like yours. Secondly, That this plague was sent by God many years
after the injury, the cause of the plague, was committed. And for
what end were this and such like examples recorded in holy
Scriptures? without doubt, for our learning.—For God is the same to-
day as he was yesterday, and will continue the same for ever. He
does not reject the prayer of the poor and destitute; nor disregard the
cry of the meanest Negro. The blood of them spilt for these many
years in your respective provinces will ascend up to heaven against
you.’
Some who have only seen Negroes in an abject state of slavery,
broken-spirited and dejected, knowing nothing of their situation in
their native country, may apprehend, that they are naturally
insensible of the benefits of Liberty, being destitute and miserable in
every respect, and that our suffering them to live amongst us (as the
Gibeonites of old were permitted to live with the Israelites) though
even on more oppressive terms, is to them a favour; but these are
certainly erroneous opinions, with respect to far the greatest part of
them: Although it is highly probable that in a country which is more
than three thousand miles in extent from north to south, and as much
from east to west, there will be barren parts, and many inhabitants
more uncivilized and barbarous than others; as is the case in all
other countries: yet, from the most authentic accounts, the
inhabitants of Guinea appear, generally speaking, to be an
industrious, humane, sociable people, whose capacities are naturally
as enlarged, and as open to improvement, as those of the
Europeans; and that their Country is fruitful, and in many places well
improved, abounding in cattle, grain and fruits. And as the earth
yields all the year round a fresh supply of food, and but little clothing
is requisite, by reason of the continual warmth of the climate; the
necessaries of life are much easier procured in most parts of Africa,
than in our more northern climes. This is confirmed by many authors
of note, who have resided there; among others, M. Adanson, in his
account of Goree and Senegal, in the year 1754, says, ‘Which way
soever I turned my eyes on this pleasant spot, I beheld a perfect
image of pure nature; an agreeable solitude, bounded on every side
by charming landscapes, the rural situation of cottages in the midst
of trees; the ease and indolence of the Negroes reclined under the
shade of their spreading foliage; the simplicity of their dress and
manners; the whole revived in my mind the idea of our first parents,
and I seemed to contemplate the world in its primitive state: They
are, generally speaking, very good-natured, sociable and obliging. I
was not a little pleased with this my first reception; it convinced me,
that there ought to be a considerable abatement made in the
accounts I had read and heard every where of the savage character
of the Africans. I observed, both in Negroes and Moors, great
humanity and sociableness, which gave me strong hopes, that I
should be very safe amongst them, and meet with the success I
desired, in my inquiries after the curiosities of the country.’
William Bosman, a principal Factor for the Dutch, who resided
sixteen years in Guinea, speaking of the natives of that part where
he then was, says, ‘They are generally a good sort of people, honest
in their dealings;’ others he describes as ‘being generally friendly to
strangers, of a mild conversation, affable, and easy to be overcome
with reason.’ He adds, ‘That some Negroes, who have had an
agreeable education, have manifested a brightness of understanding
equal to any of us.’ Speaking of the fruitfulness of the country, he
says, ‘It was very populous, plentifully provided with corn, potatoes
and fruit, which grew close to each other; in some places a foot-path
is the only ground that is not covered with them; the Negroes leaving
no place, which is thought fertile, uncultivated; and immediately after
they have reaped, they are sure to sow again.’ Other parts he
describes, as ‘being full of towns and villages; the soil very rich, and
so well cultivated, as to look like an entire garden, abounding in rice,
corn, oxen, and poultry, and the inhabitants laborious.’
William Smith, who was sent by the African Company to visit their
settlements on the coast of Guinea, in the year 1726, gives much the
same account of the country of Delmina and Cape Corse, &c. for
beauty and goodness, and adds, ‘The more you come downward
towards that part, called Slave-Coast, the more delightful and rich
the soil appears.’ Speaking of their disposition, he says, ‘They were
a civil, good-natured people, industrious to the last degree. It is easy
to perceive what happy memories they are blessed with, and how
great progress they would make in the sciences, in case their genius
was cultivated with study.’ He adds, from the information he received
of one of the Factors, who had resided ten years in that country,
‘That the discerning natives account it their greatest unhappiness,
that they were ever visited by the Europeans.—That the Christians
introduced the traffick of Slaves; and that before our coming they
lived in peace.’
Andrew Brue, a principal man in the French Factory, in the
account he gives of the great river Senegal, which runs many
hundred miles up the country, tells his readers, ‘The farther you go
from the Sea, the country on the river seems more fruitful and well
improved. It abounds in Guinea and Indian corn, rice, pulse, tobacco,
and indigo. Here are vast meadows, which feed large herds of great
and small cattle; poultry are numerous, as well as wild fowl.’ The
same Author, in his travels to the south of the river Gambia,
expresses his surprize, ‘to see the land so well cultivated; scarce a
spot lay unimproved; the low grounds, divided by small canals, were
all sowed with rice; the higher ground planted with Indian corn, millet,
and peas of different sorts: beef and mutton very cheap, as well as
all other necessaries of life.’ The account this Author gives of the
disposition of the natives, is, ‘That they are generally good-natured
and civil, and may be brought to any thing by fair and soft means.’
Artus, speaking of the same people, says, ‘They are a sincere,
inoffensive people, and do no injustice either to one another or
strangers.’
From these Accounts, both of the good Disposition of the Natives,
and the Fruitfulness of most parts of Guinea, which are confirmed by
many other Authors, it may well be concluded, that their
acquaintance with the Europeans would have been a happiness to
them, had those last not only borne the name, but indeed been
influenced by the Spirit of Christianity; but, alas! how hath the
Conduct of the Whites contradicted the Precepts and Example of
Christ? Instead of promoting the End of his Coming, by preaching
the Gospel of Peace and Good-will to Man, they have, by their
practices, contributed to enflame every noxious passion of corrupt
nature in the Negroes; they have incited them to make war one upon
another, and for this purpose have furnished them with prodigious
quantities of ammunition and arms, whereby they have been hurried
into confusion, bloodshed, and all the extremities of temporal misery,
which must necessarily beget in their minds such a general
detestation and scorn of the Christian name, as may deeply affect, if
not wholly preclude, their belief of the great Truths of our holy
Religion. Thus an insatiable desire of gain hath become the principal
and moving cause of the most abominable and dreadful scene, that
was perhaps ever acted upon the face of the earth; even the power
of their Kings hath been made subservient to answer this wicked
purpose, instead of being Protectors of their people, these Rulers,
allured by the tempting bait laid before them by the European
Factors, &c. have invaded the Liberties of their unhappy subjects,
and are become their Oppressors.
Divers accounts have already appeared in print, declarative of the
shocking wickedness with which this Trade is carried on; these may
not have fallen into the hands of some of my readers, I shall,
therefore, for their information, select a few of the most remarkable
instances that I have met with, shewing the method by which the
Trade is commonly managed all along the African coast.
Francis Moor, Factor to the African Company, on the river Gambia,
relates, ‘That when the King of Barsalli wants goods, &c. he sends a
messenger to the English Governor at James’s Fort, to desire he
would send up a sloop with a cargo of goods; which (says the
author) the Governor never fails to do: Against the time the vessel
arrives, the King plunders some of his enemies towns, selling the
people for such goods as he wants.—If he is not at war with any
neighbouring King, he falls upon one of his own towns, and makes
bold to sell his own miserable subjects.’
N. Brue, in his account of the Trade, &c. writes, ‘That having
received a quantity of goods, he wrote to the King of the country,
That if he had a sufficient number of slaves, he was ready to trade
with him. This Prince (says that author) as well as other Negroe
Monarchs, has always a sure way of supplying his deficiencies by
selling his own subjects.—The King had recourse to this method, by
seizing three hundred of his own people, and sent word to Brue, that
he had the slaves ready to deliver for the goods.’
The Misery and Bloodshed, consequent to the Slave-trade, is
amply set forth by the following extracts of two voyages to the coast
of Guinea for slaves. The first in a vessel from Liverpool, taken
verbatim from the original manuscript of the Surgeon’s journal, viz.
‘Sestro, December the 29th, 1724. No trade to-day, though many
Traders come on board; they inform us, that the people are gone to
war within land, and will bring prisoners enough in two or three days:
in hopes of which we stay.
‘The 30th. No trade yet, but our Traders came on board to-day,
and informed us, the people had burnt four towns of their enemies,
so that to-morrow we expect slaves off. Another large ship is come
in: Yesterday came in a large Londoner.
‘The 31st. Fair weather, but no trade yet: We see each night towns
burning; but we hear the Sestro men are many of them killed by the
inland Negroes, so that we fear this war will be unsuccessful.
‘The 2d January. Last night we saw a prodigious fire break out
about eleven o’clock, and this morning see the town of Sestro burnt
down to the ground, (it contained some hundreds of houses) so that
we find their enemies are too hard for them at present, and
consequently our trade spoiled here; so that about seven o’clock we
weighed anchor, as did likewise the three other vessels, to proceed
lower down.’
The second relation, also taken from the original manuscript
journal of a person of credit, who went Surgeon on the same account
in a vessel from New-York to the coast of Guinea, about nineteen
years past, is as follows, viz.
‘Being on the coast at a place called Basalia, the Commander of
the vessel, according to custom, sent a person on shore with a
present to the King, acquainting him with his arrival, and letting him
know, they wanted a cargo of slaves. The King promised to furnish
them with slaves; and in order to do it, set out to go to war against
his enemies, designing also to surprize some town, and take all the
people prisoners: Some time after, the King sent them word, he had
not yet met with the desired success, having been twice repulsed, in
attempting to break up two towns; but that he still hoped to procure a
number of slaves for them; and in this design he persisted till he met
his enemies in the field, where a battle was fought, which lasted
three days; during which time the engagement was so bloody, that
four thousand five hundred men were slain on the spot.’ The person,
that wrote the account, beheld the bodies as they lay on the field of
battle. ‘Think (says he in his journal) what a pitiable sight it was, to
see the widows weeping over their lost husbands, orphans deploring
the loss of their fathers, &c. &c.’
Those who are acquainted with the Trade agree, that many
Negroes on the sea-coast, who have been corrupted by their
intercourse and converse with the European Factors, have learnt to
stick at no act of cruelty for gain. These make it a practice to steal
abundance of little Blacks of both sexes, when found on the roads or
in the fields, where their parents keep them all day to watch the corn,
&c. Some authors say, the Negroe Factors go six or seven hundred
miles up the country with goods, bought from the Europeans, where
markets of men are kept in the same manner as those of beasts with
us. When the poor slaves, whether brought from far or near, come to
the sea-shore, they are stripped naked, and strictly examined by the
European Surgeons, both men and women, without the least
distinction or modesty; those which are approved as good, are
marked with a red-hot iron with the ship’s mark; after which they are
put on board the vessels, the men being shackled with irons two and
two together. Reader, bring the matter home, and consider whether
any situation in life can be more completely miserable than that of
those distressed captives. When we reflect, that each individual of
this number had some tender attachment which was broken by this
cruel separation; some parent or wife, who had not an opportunity of
mingling tears in a parting embrace; perhaps some infant or aged
parent whom his labour was to feed and vigilance protect;
themselves under the dreadful apprehension of an unknown
perpetual slavery; pent up within the narrow confines of a vessel,
sometimes six or seven hundred together, where they lie as close as
possible. Under these complicated distresses they are often reduced
to a state of desperation, wherein many have leaped into the sea,
and have kept themselves under water till they were drowned; others
have starved themselves to death, for the prevention whereof some
masters of vessels have cut off the legs and arms of a number of
those poor desperate creatures, to terrify the rest. Great numbers
have also frequently been killed, and some deliberately put to death
under the greatest torture, when they have attempted to rise, in order
to free themselves from their present misery, and the slavery
designed them. An instance of the last kind appears particularly in an
account given by the master of a vessel, who brought a cargo of
slaves to Barbadoes; indeed it appears so irreconcileable to the
common dictates of humanity, that one would doubt the truth of it,
had it not been related by a serious person of undoubted credit, who
had it from the captain’s own mouth. Upon an inquiry, What had
been the success of his voyage? he answered, ‘That he had found it
a difficult matter to set the negroes a fighting with each other, in
order to procure the number he wanted; but that when he had
obtained this end, and had got his vessel filled with slaves, a new
difficulty arose from their refusal to take food; those desperate
creatures chusing rather to die with hunger, than to be carried from
their native country.’ Upon a farther inquiry, by what means he had
prevailed upon them to forego this desperate resolution? he
answered, ‘That he obliged all the negroes to come upon deck,
where they persisted in their resolution of not taking food, he caused
his sailors to lay hold upon one of the most obstinate, and chopt the
poor creature into small pieces, forcing some of the others to eat a
part of the mangled body; withal swearing to the survivors, that he
would use them all, one after the other, in the same manner, if they
did not consent to eat.’ This horrid execution he applauded as a
good act, it having had the desired effect, in bringing them to take
food.
A similar case is mentioned in Astley’s Collection of Voyages, by
John Atkins, Surgeon on board Admiral Ogle’s squadron, ‘Of one
Harding, mailer of a vessel, in which several of the men-slaves, and
a woman-slave, had attempted to rise, in order to recover their
liberty; some of whom the master, of his own authority, sentenced to
cruel death; making them first eat the heart and liver of one of those
he killed. The woman he hoisted by the thumbs; whipped and
slashed with knives before the other slaves, till she died.’
As detestable and shocking as this may appear to such, whose
hearts are not yet hardened by the practice of that cruelty, which the
love of wealth, by degrees, introduceth into the human mind; it will
not be strange to those who have been concerned or employed in
the Trade. Now here arises a necessary query to those who hold the
balance and sword of justice; and who must account to God for the
use they have made of it. Since our English law is so truly valuable
for its justice, how can they overlook these barbarous deaths of the
unhappy Africans without trial, or due proof of their being guilty, of
crimes adequate to their punishment? Why are those masters of
vessels, (who are often not the most tender and considerate of men)
thus suffered to be the sovereign arbiters of the lives of the

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