Lesson 1

Question 1

It is a branch of human resources that focuses on how a company or organization pays his or her employees and provides them with benefits.

Answer 1

Compensation and Benefits

Question 2

What are the importance of Compensation and Benefits?

Answer 2

• Used to reward employees for their hard work and dedication.
• Motivate to achieve organizational goals.
• Attract and retain talented employees.

Question 3

It is the compensation an employee receives in return for his or her contribution to the organization or company.

Answer 3

Employee Remuneration

Question 4

These are provided to employees over and above salaries and wages. These employee benefit packages may include medical, insurance, cation, profit sharing and retirement benefits, to name just a few.

Answer 4

Perks or Fringe Benefits

Question 5

It is the clean rate of compensation the employee receives in exchange for the services he or she provides for the employer.

Answer 5

Fixed Pay

Question 6

It is part of employee compensation determined by the performance of the employee.

Answer 6

Variable Pay

Question 7

What are the Elements of Compensation?

Answer 7

Fixed Pay and Variable Pay

Question 8

What are the Forms of Compensation?

Answer 8

Financial and Non-Financial

Question 9

Composed of Direct and Indirect Compensation

Answer 9

Financial

Question 10

It consists of the satisfaction that an employee receives from the job itself in terms of their psychological, emotional, physical and spiritual well-being

Answer 10

Non-Financial

Question 11

Composed of wages, salaries, bonuses and commissions

Answer 11

Direct Compensation

Question 12

Has financial value, but not a direct monetary payment

Answer 12

Indirect Compensation

Question 13

What are the Main Components of Compensation?

Answer 13

Monetary and Non-Monetary

Question 14

Are rewards given to employees that have a direct monetary value

Answer 14

Monetary

Question 15

Rewards that don’t have an explicit value tied to them or in other words can’t be redeemed for cash.

Answer 15

Non-Monetary

Question 16

Examples of Non-Monetary Rewards (There are 5)

Answer 16

• Personal Growth
• Career Advancement
• Professional Development
• Social Benefits
  -Community Involvement

Question 17

What motivates young Filipino workers? (Give 5)

Answer 17

• Personal sense of accomplishment
• Doing what they love or enjoy
• Opportunity for promotion and growth - Compensation and rewards
• Good relationship with peers

Question 18

What motivates young Filipino workers to stay in the organization? (Give 5)

Answer 18

• Good compensation
• Professional growth
• Love for job itself
• Harmonious relationship with peers
• Good benefits

Question 19

Some Principles in Setting Basic Salary

Answer 19

1. Pay must be equitable in relation to what other employees get for what they do.
2. Pay rates must be realistic, based on the company’s capacity to pay and compete in the labor market so that it can continue to attract and retain the right employees.
3. The purchasing power of the money that the employee receives from the amount of essential needs for a decent living that the employee can provide for himself and his family.
4. Any regulation on wages such as the minimum wage law or wage order adjustment should dictate a minimum level basic salary.

Question 20

A simplistic way of compensation is through this equation:

Answer 20

A+B+D=E

Question 21

In the equation A+B+D=E, A means?

Answer 21

A.
Guaranteed Cash
Regular Salary
Fixed and guaranteed allowance Fixed/guaranteed bonuses (13th month pay)

Question 22

In the equation A+B+D=E, B means?

Answer 22

B. Variable or discretionary compensation (e.g. commission, profit share, performance bonus, management incentives).

Question 23

In the equation A+B+C+D=E, C means?

Answer 23

C. Total Cash (A+B)

Question 24

In the equation A+B+C+D=E, D means?

Answer 24

D. Benefits

Question 25

In the equation A+B+C+D=E, E means?

Answer 25

E. Total Remuneration (C+D)