Compensation and benefits
Is a sub-discipline of human resources, focused on employee compensation and benefits policy-making.
The basic components of employee compensation and benefits:
Employee compensation and benefits are basically divided into four categories: 1. Guaranteed pay – monetary (cash) reward paid by an employer to an employee based on employee/employer relations. The most common form of guaranteed pay is the basic salary. 2. Variable pay – monetary (cash) reward paid by an employer to an employee that is contingent on discretion, performance or results achieved. The most common forms are bonuses and sales incentives. 3. Benefits – programs an employer uses to supplement employees’ compensation, such as paid time off, medical insurance, company car, and more. 4. Equity-based compensation – a plan using the employer’s share as compensation. The most common examples are stock options. 1-Guaranteed pay
Guaranteed pay is a monetary (cash) reward.
The basic element of the guaranteed pay is the base salary, paid based on an hourly, daily, weekly, bi-weekly or a monthly rate. The base salary is typically used by employees for ongoing consumption. Many countries dictate the minimum base salary defining a minimum wage. Individual skills and level of experience of employees leave room for differentiation of income-levels within the job-based pay structure.
Variable pay is a monetary (cash) reward that is contingent on discretion, performance or results achieved. There are different types of variable pay plans, such as bonus schemes, sales incentives (commission), overtime pay, and more.
-There is a wide variety of employee benefits, such as paid time-off, insurances (life insurance, medical/dental insurance, and work disability insurance),pension plan, company car, and more. A benefit plan is designed to address a specific need and is often provided not in the form of cash. Many countries dictate different minimum...
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