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compensation & benefits > 1. introduction to compensation and benefits > Flashcards

1. introduction to compensation and benefits Flashcards

1
Q

what is compensation?

A

all forms of financial returns and tangible services and benefit employees receive as part of an employment relationship

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2
Q

how should a company compensate?

A

must be compliant with the law and must be fair

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3
Q

what is internal alignment?

A

it refers to comparisons among jobs or skill levels inside a single organization

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4
Q

what does internal alignment pertain to?

A

the pay rates both for employees doing equal work and for those doing dissimilar work

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5
Q

how will pay relationships affect compensation?

A

it affects the compensation objectives of efficiency, fairness and compliance

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6
Q

how will pay relationships affect employees

A

it will affect decision making

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7
Q

what will external competitiveness make the pay to be

A

market driven

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8
Q

what are the objectives of external competitiveness?

A
  • ensure that the pay is sufficient to attract and retain employees
  • control labour costs to ensure competitive pricing of products and services
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9
Q

what is external competitiveness?

A

pay comparisons with competitors

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10
Q

what is employee contribution for?

A

understanding the basis for judging performance, helps perceive pay as fair

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11
Q

how can companies recognize employee contributions?

A

motivate and develop incentive programs - monetary or non-monetary

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12
Q

what are the components under seniority-based?

A

loyalty, experience and inflexible

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13
Q

what is performance-based?

A

sales target, individual/team contribution and using performance appraisal to link to salary adjustment

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14
Q

what is under the pay model?

A

implementation, pay for performance, external competitiveness, internal alignment and objectives

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15
Q

what is in cash compensation?

A

the base salary

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16
Q

what is considered merit or cost of living?

A

allowances like attendance, hardship, noise, uniform, etc

17
Q

what is considered short term?

A

anything that is paid or enjoyed within 0-18 months after the announcement of incentive

18
Q

what are the components in short term?

A

the commission, annual wage supplement, corporate bonus, etc

19
Q

what is considered long term?

A

anything that is paid or enjoyed later than 0-18 months after the announcement of incentive

20
Q

what are the components in long term?

A

deferred bonus, stock purchase, stock grant plan, etc

21
Q

what are the components of benefits?

A

income protection, work/life balance, allowance

22
Q

what are the components that are considered as leave?

A

annual, child/elder care, marriage, medical, etc

23
Q

what is under health?

A

outpatient, specialist, hospital, etc

24
Q

what is in insurance?

A

gtl, gpa, travel

25
Q

what type of loans are there?

A

study & housing

26
Q

what are the facilities available?

A

childcare, gym, canteen, pantry

27
Q

what acts are under statutory/mandatory?

A

employment, part-time employment, child co-saving, trade union and work injury compensation act

28
Q

what is considered as discretionary?

A

any benefits give outside the law

29
Q

what is relational returns?

A

non-financial returns that substantially impact employee behaviours

30
Q

what is the components of rational returns?

A

recognition, status, employment security, challenging work and learning opportunitities

31
Q

what compensation strategies can companies have?

A

different business units, product lines, locations and staff population

32
Q

why should pay system align with the business strategy?

A

better the alignment = more effective organization

changes in business strategies should result in changes in pay system

33
Q

what are the types of business strategy?

A

innovator, cost cutter and customer focused

34
Q

what is innovator?

A

increase product complexity and shorten product life cycle + unique and innovative product or service at a premium price

35
Q

what is cost cutter?

A

focus on efficiency and firms that cut cost

36
Q

what is customer focused?

A

increase customer expectations and stresses delighting customers and bases employee pay on how well they do this

37
Q

what is competitive advantages?

A

organization compete for limited talents/employees and a strategic perspective focuses on those competitive choices that help organization gain and sustain competitive advantages

compensation & benefits (9 decks)

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