COMPENSATION AND BENEFITS Flashcards
______ ______ describes all the tools an employer uses to attract, motivate, and retain employees, including anything the employee perceives to be valuable as a result of working at an organization.
Total Rewards
The (5) components of total rewards are -
- Compensation
- Benefits
- Work/Life Programs
- Recognition Programs
- Professional Developement
What starts with attraction and recruitment, moves into onboarding, then development and retention through to separation or termination?
Employee Life Cycle
______ and _______ are the same term, and are the money’s received in exchange for the work they perform of the time they work.
Compensation; Remuneration
What are the compensable factors according to the Equal Pay of 1963?
Effort
Skills Responsibility
Working Conditions
Years of Experience
Licenses
Value to the Organization
And more
What act determines exempt versus nonexempt?
Fair Labor Standards Act
Exempt means an employee is …
exempt from the FLSA and, therefore, the act doesn’t apply to them.
Nonexempt means an employee has ….
specific requirements, including OT wages when an employee works more than forty hours in a week.
OT pay, for nonexempt staff, is calculated on on how many hours are worked in a _____ ______ not a _______ _______.
Pay week; pay period.
Some union contracts or employers pay OT for over how many hours worked in a day?
8
What is another term for fixed pay? What is an example of fixed pay?
Base pay. Hourly Wage.
What is variable pay? What is an example of variable pay?
Variable pay fluctuates with factors such as performance or goals achieved. Example: commission.
What is pay-for-performance?
When employees are rewarded for achieving goals.
What is a piece-rate-system?
When employees are paid for the number of units produced.
What is premium pay? What is an example?
Compensation tied to nontraditional work schedules, shifts, and skills, and is provided in addition to fixed pay.
Example: shift differential, holiday pay.
What is deferred compensation? What is an example?
Compensation that is paid out long after employee earns the money.
Example: pension.
What is direct compensation?
Refers to monetary payouts that have been discussed previously in regard to monies paid for work or time performed.
What is indirect compensation? What is an example?
Refers to nonmonetary items paid for by the company for the employee.
Example: company car.
_______ ______ refers to the idea that employees who perform roles or work with relatively the same value should be paid a similar wage.
Comparable worth.
What term refers to the compensation level of one job with another within the same organizat?
Internal alignment.
What term refers to the assessment of the pay levels of an internal job in relation to the market value of that job more broadly?
External competitiveness.
This process refers to the use of a job analysis, wage data, and job description to analyze the relative value and pay of a role as it relates to other roles in the organization.
Internal consistency.
______ _______ _____ and ______ ______ are the two most common types of pay structure.
Internal equity method; market pricing.
Internal equity is
pay based on the jobs placement in the organizational hierarchy.
Market pricing is
that each job’s pay is tied to the prevailing market rate.
An employee is ____-_____ when they are paid above the market rate, if their pay is held or has received smaller increases until the market or target pay level meets their salary. Name one example where this may have occurred.
Red-circled. Demotion.
An employee is ____-_____ when they are payed below the range of the job, they receive larger increased to help catch-up to market or target.
Green-circled.
What is the first step in a pay structure?
Create a compensation philosophy.
What is the second step in creating a pay structure?
Perform a job analysis to facilitate job descriptions.
What is the third step in creating a pay structure?
Create pay grades and pay bands.
____ ______ are a system of establishing a range of compensation through a fixed framework.
Pay grades
Similar to pay grades, ____ _____ include a broader segment of roles.
pay bands.
What are the steps in a compensation anlaysis?
Determine payroll budget
Benchmark each job’s value, and create salary ranges and pay grades.
______ _____ rewards high performance.
Merit adjustment
______ ______ is awarded to those that exceed their duties.
Incentive pay
____-______ ______ rewards employees for matering new skills and is typically given to those who perform physical or production work.
Skill-based pay
_____-___-______ is a compensation system based on an employee’s KSA’s not an increase or bonus.
Pay-for-Knowledge
What does COLA stand for and what does it mean?
Cost of Living Adjustment and it refers to an annual increase based on inflation.
Seniority Adjustment is
a pay adjustment based on an employee’s length of service or seniority at the organization.
What is the C-Level?
C-Level refers to the CEO, CFO, CIO, etc. Generally any title beginning with Chief.
Base salaries, bonuses or performance incentives, signing bonus, stock options, income protection in the event of a company sale or liquidation, predetermined severance package for termination w/o cause, executive-only benefits, company pre-reqs’s are all components of what?
Executive Compensation Packages.
What document protects privacy and data among in the European Union?
EU Data Protection Directive
_______ _______ or hazard pay may be awarded to some expatriates to incentivize living in difficult context, for educational assistant to children, and/or spousal support for finding a new job in their new country.
Hardship allowance
Where do organizations outsources their payroll and/or human resources duties?
TPA - Third-Party Administrators
This document includes information about pay as well as information about direct and indirect compensation and benefits, including both the employers and the employees contributions.
Compensation statement
What accounting document is a financial summary of a company’s assets and liabilities?
Balance Sheet
A P&L statement (also known as ____ and ____ statement) summarizes the organizations revenue, costs, and expenses.
Profit and Loss Statement
Accounts Payable is
a ledger that identifies money owed by the company.
Account Recieveable is
a ledger that identifies money owed to the company.
Accrual principle is
a financial statement reflecting costs when they occur rather than when they are paid.
This pay is awarded to an individual if they are ever terminated, must comply with Employee Retirement Income Security Act (ERISA), and helps the terminated individual bridge the gap between jobs.
Severance pay
Executive severance packages can include pay from _____ months to ____ year or more. It may also include ____ and ______.
6; 1. Bonuses; benefits.
Two types of employee benefits are ….
Mandated benefits (required by law) and Discretionary benefits (or those that an employer chooses to offer.
Mandated benefits include:
SS Taxes
Unemployment Insurance (UI)
Workers Compensation
Disability Insurance
FMLA
Military Leave
Patient Protection and Affordable Care Act (PPACA)
What benefits are the most common discretionary benefits?
Health and Welfare Benefits
This act requires employers with ____ or more employees to offer; offer health care
Patient Protection and Affordable Care Act (PPACA), 50.
A cafeteria plan allows ….
an employee to reduce their compensation in order to pay their share of employer-provided benefits coverage on a pretax basis. Employees can choose from two or more cash or qualified benefit plans.
In a ______ _______ ______ (_ _ _), employee sets aside a portion of earnings to pay for certain expenses as established in the cafeteria plan.
Flexible Spending Account (FSA)
In a _____ _____ _____ (_ _ _), an employer-funded account that can be used to cover qualified medical expenses of the employee and their dependents.
Health Reimbursement Account (HRA)
In a _____ _____ _____ (_ _ _), a pretax medical savings account is available to participants in a high-deductible health plan (HDHP).
Health Savings Account (HSA)
Which act covers most private-sector health plans, provides protection for participants and beneficiaries covered under employee benefit plans, and one in which plan administrators and fiduciaries are required to meet certain standards of conduct that are outlined in the law?
Employee Retirement Income Security Act (ERISA)
Which act grants employees the right to keep the group health insurance (and pay the premium) that they would otherwise lose after they quit or lose their jobs, or reduce their work hours? Most can retain their insurance for up to _ _ months or longer in some cases.
COBRA (Consolidated Omnibus Budget Reconciliation Act); 18.
Which act provides opportunities for people to retain (or obtain) health insurance during qualifying events, protects the confidentiality and security of health care information, and provides mechanisms to control administrative costs?
Health Insurance Portability and Accountability Act of 1996 (HIPAA)
Which act requires certain employers to offer affordable health insurance that provides minimum value to their full-time employees and their dependents, must also communicate about healthcare marketplaces to employees and offer a standardized summary of coverage to employees (among other requirements).
Patient Protection and Affordable Care Act (PPACA)
Which act requires certain health plans to provide the same level of coverage for pregnancy as for other conditions?
Pregnancy Discrimination Act (PDA)
Which act requires that when a health plan covers mental health services, the annual or lifetime dollar limits, copays, and treatment limitations must be the same as or higher than the limits for other medical benefits?
Mental Healthy Parity Act
Which act, among other protections, requires that disabled and nondisabled individuals be provided the same benefits, premiums, deductibles, and limits under a given health plan?
American with Disabilities Act (ADA)
Which act, among other protections, requires that an employer (with _ _ or more employees) maintain health coverage for a qualified employee during the duration of FMLA leave?
50; Family and Medical Leave Act (FMLA)
Which act, among other protections, allows employees to continue group health coverage while absent from work due to military service?
Uniform Services Employment and Reemployment Rights Act (USERRA)
FMLA covers how many weeks of job protection? How long must the employee have been employed?
12 weeks; at least 12 months or a minimum of 1,250 hours
What is a defined benefit plan and an example?
A company provided pension plans in which an employee’s pension payments are calculated (defined) according to the employee’s length of service with a company.
Example: Pension
What is a defined contribution plan and an example?
A retirement savings plan in which thge employer or employee (or both) contributes on a regular basis (typically pre-tax, assuming certain conditions are met)
Example: 401k
Profit-sharing plans are …..
typically offered in conjunction with a defined contribution plan that allows the company to allocate profit to the employee’s retirement accounts using a predetermined formula and vesting schedule.
The (2) types of vesting schedule are a _______ schedule and _______ ______ schedule.
Graded; cliff vesting
Maslow’s Hierarchy of Needs is in the shape of a ….? What is the bottom level up through the 5th level?
Triangle
1.) Bottom Level: Physiological Needs (breathing, food, water, etc.)
2.) Safety and Security (health, employment, property, etc.)
3.) Love and Belonging (family, friendship, property)
4.) Self-Esteem (confidence, achievement, etc.)
5.) Self-Actualization (morality, creativity, spontaneity, etc.)
According to ______ _______ __ _____, two most important psychological needs of humans are the need for _______ and the need to ______.
Maslow’s Hierarchy of Needs; appreciation; belong.
