Compensation and Benefits
Compensation and benefits
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Compensation and benefits (abbreviated “C&B”) is a sub-discipline of human resources, focused on employee compensation and benefits policy-making.
It is also known in the UK as “total reward” and as “remuneration” in Australia and New Zealand. Contents[hide] * 1 The basic components of employee compensation and benefits * 2 Variable pay * 3 Benefits * 4 Equity-based compensation * 5 Organizational place * 6 Main influencers * 7 Bonus plans |
[edit] 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.
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.
In addition to base salary, there are other pay elements which are paid based solely on employee/employer relations,
From Wikipedia, the free encyclopedia
(Redirected from Compensation & Benefits)
Jump to: navigation, search
Compensation and benefits (abbreviated “C&B”) is a sub-discipline of human resources, focused on employee compensation and benefits policy-making.
It is also known in the UK as “total reward” and as “remuneration” in Australia and New Zealand. Contents[hide] * 1 The basic components of employee compensation and benefits * 2 Variable pay * 3 Benefits * 4 Equity-based compensation * 5 Organizational place * 6 Main influencers * 7 Bonus plans |
[edit] 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.
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.
In addition to base salary, there are other pay elements which are paid based solely on employee/employer relations,