Date Presented

Spring 4-1-2007

Document Type

Thesis

Degree Name

Bachelor of Arts

Department

Business Administration

First Advisor

Dan Messerschmidt

Second Advisor

Joe Prinzinger

Third Advisor

Mike Schnur

Abstract

In the 21st century, world is becoming a global village and with increased competition businesses are always looking for regions with the lowest possible production costs. Appropriate compensation of U.S. employees working for major U.S. corporations is a hotly debated topic in political circles. This research focuses on the top 100 companies designated as “the best companies to work for” by Fortune Magazine for the year 2006. Performance of these companies, as measured by their return on equity, return on assets, revenue growth and earnings growth along with their profit margin is used to determine the impact on them as caused by their pay to employees. The model will attempt to create a representation of the variables that affect performance of a company relative to its payment to the employees. In order to perform the research 48 publicly traded companies were selected with ranks ranging from and including 1 to 100. Results of the research showed that companies that ranked among the best companies to work for did not have any direct correlation to their performance and growth.

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