Total Rewards Flashcards
In a productivity-based pay system, pay is determined by….
the employee’s output
In a ______________ pay system, the individual employee’s performance on the job is the basis for the amount and timing of pay increases.
performance-based
A performance-based pay system is commonly called ______ or _________.
merit pay or pay for performance (P4P or PfP)
In a ______ pay system, the employee’s pay rate is based on longevity in the job. Pay increases occur on a pre-determined schedule.
time-based step-rate
In ______ pay, employee characteristics, rather than how the job is performed, determine pay. In such systems, two employees may perform similar tasks, but the person with superior knowledge or skill mastery receives more pay
person-based pay
situations where there is only a small difference in pay between employees regardless of their experience, skills, level, or seniority
Pay compression
Relationship of current salaries to the midpoints of the salary ranges
(Employee’s pay Rate)/(Ray range midpoint)
Compensation Ratio
All costs associated with employment, including salaries, overtime, benefits, and bonuses
(salaries+overtime+benefits+bonuses)/(Total operating costs)
Total Organization Compensation Expense
The final step in a benefits needs assessment is to compare the following:
- Organizational needs (including budget)
- Employee needs
- Existing set of benefits
services that are intended to help identify and resolve employee concerns related to personal matters or work-related issues that, in some instances, can affect health or performance in the workplace
Employee assistance program (EAP)
program is intended to promote and support the health, safety, and well-being of employees Examples: - help employees stop smoking - weight loss programs - diabetes management - discounts to gyms
Wellness Program
payments made to employees who are physically unable to perform their jobs because of illness or injury
Disability
insurance against work-related accidents or illnesses is called
Workers’ Compensation
With Workers’ Compensation, an employer is protected against being sued by the injured employee even though the injury occurred at the workplace, Unless…..
The employer was negligent
The two main types of Retirement Plans
Defined Benefit - promises specific benefit amount upon retirement, set vesting schedule, benefits based in service and perhaps salary, employer bears the investment risk
Defined Contribution - specified amount of money to be contributed to the fund, no promise of future value, employees get 100% of investment and vested portion, amount of benefit at retirement depends on investment return, employee bears investment risk
