Compensation

Examples of Compensation in the following topics:

• Compensation and Competition

  • Good compensation helps organizations stay competitive in their industry by retaining high-quality employees.
  • Compensation is what employees receive for the work they perform at a company.
  • Compensation can come in the form of cash as well as benefits (e.g., health insurance).
  • Compensation can be a two-edged sword if it is not managed properly.
  • On the other hand, high levels of compensation create high overhead for the company.

• Employee Compensation and Benefits

  • Compensation and benefits is the subdiscipline of human resources that deals with employees' remuneration.
  • Compensation and benefits (C&B) is a subdiscipline of human resources that is focused on policy making for employee compensation and benefits.
  • Employee compensation and benefits can be divided into four general categories:
  • Equity-based compensation—A plan that uses the company's shares as compensation.
  • Equity-based compensation is a compensation plan that uses the employer's shares as employee compensation.

• Compensation Differentials

  • Some differences in wage rates across places, occupations, and demographic groups can be explained by compensation differentials.
  • The compensation differential ensures that individuals are willing to invest in their own human capital.
  • Not to be confused with a compensation differential, a compensating differential is a term used in labor economics to analyze the relation between the wage rate and the unpleasantness, risk, or other undesirable attributes of a particular job.
  • Hazard pay is a type of compensating differential.
  • Occupations that are dangerous, such as police work, will typically have higher pay to compensate for the risk associated with that job.

• Benefits and non-monetary compensation

  • Cash is one way to compensate employees, but cash alone is rarely enough payment.
  • Benefits and other forms of non-monetary compensation are becoming more appropriate forms of compensation for employees in today's workplace.
  • A benefit is a "general, indirect and non-cash compensation paid to an employee" that is offered to at least 80 per cent of staff (Employee Benefits Definition).
  • In order to attract, retain, and motivate the best employees, benefits and other sources of nonmonetary compensation should be considered.
  • If a company offers employees extremely high wages compared to other businesses in the industry in addition to non-monetary compensation, costs may increase at a faster rate than profit.

• Monetary Employee Compensation

  • Monetary compensation can be either guaranteed (base) pay or variable pay and positively correlates with job satisfaction.
  • Monetary compensation includes both guaranteed (base) and variable pay.
  • The results of these studies show that employees who feel that they are underpaid relative to their skill levels will not perform as well as they would if they felt that they were appropriately compensated.
  • The effect of compensation on employee job satisfaction has also been studied.
  • Identify the different cash compensation models (i.e., guaranteed and variable) and the behavioral implications of using monetary compensation

• Motivating and Compensating Salespeople

  • Employees are best motivated through effective job design, equitable compensation, and treatment as stakeholders in the company.
  • Reward systems include compensation, bonuses, raises, job security, and benefits.
  • Cash is one way to compensate employees, but cash alone is rarely enough payment.
  • Benefits and other forms of non-monetary compensation are becoming more appropriate forms of compensation for employees in today's workplace.
  • Most compensation systems include "variable pay."

• Employee Benefits Management

  • Employee benefits are non-wage compensations designed to provide employees with extra economic security.
  • Employee benefits are non-wage compensations designed to provide employees with extra economic security.
  • Human resources (HR) has a wide range of responsibilities, including hiring, training, assessment, and compensation across the company.
  • Benefits and compensation, however, lay at the center of HR operations and play a central role in both the financial capacity and talent management of any institution.
  • Employee satisfaction and compensation help companies achieve high efficiency and strong performance from their employees by administering the appropriate level of compensation and benefits.

• Executive Compensation

  • Executive pay (also known as executive compensation) is financial compensation received by an officer of a firm.
  • Many policy makers are concerned about the huge growth in executive compensation and the lack of a relationship between performance and compensation.
  • In general, the compensation of CEOs in the United States has risen to over 400 times the salary of the average U.S. worker, compared to about 30 times only a few decades ago .
  • The compensation of CEOs in the United States has risen to over 400 times the salary of the average U.S. worker, compared to about 30 times only a few decades ago.
  • Analyze the arguments for and against huge growth in executive compensation

• Non-Monetary Employee Compensation

  • Non-monetary compensations (e.g., benefits) are essential in recruiting skilled employees and maintaining a satisfied workforce.
  • Employers have several options with respect to non-monetary compensation.
  • The largest category of non-monetary compensation includes benefits.

• Inflation Premium

  • An inflation premium is the part of prevailing interest rates that results from lenders compensating for expected inflation.
  • An inflation premium is the part of prevailing interest rates that results from lenders compensating for expected inflation by pushing nominal interest rates to higher levels.
  • In economics and finance, an individual who lends money for repayment at a later point in time expects to be compensated for the time value of money, or not having the use of that money while it is lent.
  • In addition, they will want to be compensated for the risks of the money having less purchasing power when the loan is repaid.
  • The inflation premium will compensate for the third risk, so investors seek this premium to compensate for the erosion in the value of their capital, due to inflation.