File Name: what is compensation and benefits .zip
- Employee Benefits and Compensation (Employee Pay)
- COMPENSATION ADMINISTRATION
- Example of an Employee Compensation Plan
Employee Benefits and Compensation (Employee Pay)
Employee Benefits Compensation Salary Surveys. In addition to the articles on this current page, also see the following blogs that have posts related to Benefits and Compensation. Scan down the blog's page to see various posts. Also see the section "Recent Blog Posts" in the sidebar of the blog or click on "next" near the bottom of a post in the blog.
The blog also links to numerous free related resources. Employee benefits typically refers to retirement plans, health life insurance, life insurance, disability insurance, vacation, employee stock ownership plans, etc. Benefits are increasingly expensive for businesses to provide to employees, so the range and options of benefits are changing rapidly to include, for example, flexible benefit plans.
Benefits are forms of value, other than payment, that are provided to the employee in return for their contribution to the organization, that is, for doing their job.
Some benefits, such as unemployment and worker's compensation, are federally required. Worker's compensation is really a worker's right, rather than a benefit. Prominent examples of benefits are insurance medical, life, dental, disability, unemployment and worker's compensation , vacation pay, holiday pay, and maternity leave, contribution to retirement pension pay , profit sharing, stock options, and bonuses.
Some people would consider profit sharing, stock options and bonuses as forms of compensation. You might think of benefits as being tangible or intangible. The benefits listed previously are tangible benefits. Intangible benefits are less direct, for example, appreciation from a boss, likelihood for promotion, nice office, etc. People sometimes talk of fringe benefits, usually referring to tangible benefits, but sometimes meaning both kinds of benefits.
You might also think of benefits as company-paid and employee-paid. While the company usually pays for most types of benefits holiday pay, vacation pay, etc. Nonprofits Can Complete for Employee Benefits. Also see the Related Info including Benefits. Compensation is payment to an employee in return for their contribution to the organization, that is, for doing their job. The most common forms of compensation are wages, salaries and tips. Base pay is based on the role in the organization and the market for the expertise required to conduct that role.
Variable pay is based on the performance of the person in that role, for example, for how well that person achieved his or her goals for the year. Incentive plans, for example, bonus plans, are a form of variable pay.
Some people might consider bonuses as a benefit, rather than a form of compensation. Some programs include a base pay and a variable pay. The ranges include the minimum and the maximum amount of money that can be earned per year in that role.
Employees have certain monies withheld from their payroll checks, usually including federal income tax, state income tax, FICA social security contributions, and employee contributions to the costs of certain benefits often medical insurance and retirement. Professional, management and other types of skilled jobs are classified as exempt.
Exempt jobs get a salary, that is, a fixed amount of money per time interval, usually a fixed amount per month. It's not uncommon for exempt positions to receive higher compensation and benefits than non-exempt jobs, although non-exempt jobs often can make more money than exempt jobs simply by working more hours. Unskilled or entry-level jobs are usually classified as non-exempt. Non-exempt jobs usually get a wage, or an amount of money per hour. Non-exempt jobs also get paid over-time, that is, extra pay for hours worked over 40 hours a week or on certain days of the week or on holidays.
Each job must have the same pay range for anyone performing that job, that is, one person can't have a higher maximum pay than someone else doing that same job. Also consider Rewarding Employees. It is extremely useful to reference salary surveys when determining salaries. The surveys lend tremendous credibility and fairness to the process of determining compensation. Be sure that surveys are somewhat current. Reference them to find the salaries for the job roles that are the closest match to the roles you are deciding the compensation for.
The closer you can match the role to the type of services, locale and job title of the role you are deciding compensation for, the more useful the survey is likely to be to you, especially if the survey was generated in the past five years or less.
Surfing for Salaries from monster. To round out your knowledge of this Library topic, you may want to review some related topics, available from the link below. Each of the related topics includes free, online resources.
Library's Career Management Blog Library's Human Resources Blog Employee Benefits Employee benefits typically refers to retirement plans, health life insurance, life insurance, disability insurance, vacation, employee stock ownership plans, etc. Exempt and Non-Exempt Jobs in organizations have two classifications, exempt and non-exempt. Related Library Topics Recommended Books.
Employee Benefits Compensation Salary Surveys. In addition to the articles on this current page, also see the following blogs that have posts related to Benefits and Compensation. Scan down the blog's page to see various posts. Also see the section "Recent Blog Posts" in the sidebar of the blog or click on "next" near the bottom of a post in the blog. The blog also links to numerous free related resources.
Example of an Employee Compensation Plan
Compensation and benefits form varieties differ on who is the targeted audience of the form and what types of data and information will be incorporated in the form. Attending Physician Benefits Form — This variety of compensation and benefits form is intended to be used by an employee and his attending physician. Additionally, the employee should also sign and date the form to certify that his provided answers and statements are true and accurate. Benefits Change Form — If an employee wants to change any of his information in an employee benefits package, or if he wants to change from one package to another, then he must use a document known as benefits change form. The form contains four sections to be filled out by an employee.
Compensation may include hourly wages or an annual salary, plus bonus payments, incentives and benefits, such as group health care coverage, short-term disability insurance and contributions to a retirement savings account. A total compensation package can have several components. Employees classified as non-exempt receive what employers usually call wages, which are calculated on an hourly basis and require overtime payment for work in excess of 40 hours per week. Overtime is one and a half times the hourly rate.
Compensation administration is a segment of management or human resource management focusing on planning, organizing, and controlling the direct and indirect payments employees receive for the work they perform. Compensation includes direct forms such as base, merit, and incentive pay and indirect forms such as vacation pay, deferred payment, and health insurance. Compensation does not refer, however, to other kinds of employee rewards such as recognition ceremonies and achievement parties. The ultimate objectives of compensation administration are: efficient maintenance of a productive workforce, equitable pay, and compliance with federal, state, and local regulations based on what companies can afford.