Compensation Flashcards
What is Compensation
All forms of financial returns and tangible services and benefits employees receive as part of an employment relationship
Examples of Compensation
Healthcare
Pet healthcare
Commission/Bonus
Retirement
Discounts
Vacation TIme
Employees Perspective on Compensation
Entitlement
Return
Reward
Managers Perspective on Compensation
Cost
Influence
A Pay Model
Compensation Objectives
Policies that form the foundation of the compensation system
Techniques that make up the compensation system
Internal Alignment
Description:
Comparisons between jobs or skill levels inside a single organization
Techniques:
Job Analysis
Job Description
Evaluation/Certification
External Competitiveness
Description:
Comparisons of compensation with competitors external to the organization
Techniques:
Market Definitions
Surveys
Policy Lines
Employee Contributions
Description:
Relative emphasis placed on employee performance
Techniques:
Seniority-Based
Performance Based
Merit Guidelines
Management* as a strategic policy
Description:
Policies related to managing the pay system
Techniques:
Costs
Communication
Change
Job Attraction Drivers
Base Pay / Salary
Job Security
Career Advancement
Challenging Work
Opportunities for skills
Reputation of organization
Healthcare and Wellness Benefits
Compensation Management* Abbreviation
T = Theories
T = Techniques
C = Common Sense
Two key questions should be constantly asked
Why do it this way? (rarely one correct way to design a system or pay someone)
What does this technique do for us?(how does it help achieve goals)
