The proportion of total compensation made up of benefit costs was greater in large establishments. Benefit costs accounted for 30.8 percent of total compensation costs for workers in establishments with 500 or more employees, compared with 24.9 percent of compensation in establishments with less than 100 workers. Compared with small establishments, large establishments tend to be located in metropolitan areas and are more likely to be covered by union contracts, two factors often associated with higher compensation costs. Note that establishment size may differ from firm size. The Bureau of Labor Statistics defines an establishment as a single physical location where business is conducted.
Establishments can be parts of a larger company.
Additional information is reported in the bulletin, Employer Costs for Employee Compensation, 1986-97, Bulletin 2505, August 1998. The Bureau of Labor Statistics is an agency within the U.S. Department of Labor .