Total Rewards Flashcards
additional compensation for performance above expectations, paid in addition to base salary
Bonus
complex point factor system, evaluated based on knowledge, problem, solving accountability
HAY System
shares company profits in form of DC qualified plan, distribute pretax dollars to eligible employees, percentage of base salary
Profit Sharing
splits positions in company into just a few specific ranges, lead to greater collaboration by limiting employee focus on hierarchical differences
Broadbanding
1) Review job description
2) Select Salary Survey
3) Review compensation components
4) Recommend salary range
Job Pricing
salaries based on skills/knowledge, competency profiles replace job descriptions, 10-12 key competencies, increased competence results in higher compensation and places responsibility on employees
Competency-Based Compensation
involve employees and managers in improving productivity and sharing benefits of success
Gainsharing
reward employees for individual or organizational results, motivates employees to achieve business objectives
Variable Compensation
based on length of time employee is in position, years of related experience, entitlement compensation philosophy
Seniority Based Compensation
FLSA Exemption Tests
- salary level test (<23,600)
- salary basis test (cannot be reduced due to lack of work, low quality)
- duties test (executives, admins, professional, computer related, outside personal)
person designated by plan sponsor to manage plan
Plan Administrator
compare value of jobs, subjective, complicated in complex organization
Ranking Method
includes merit increases and promotions, based on how well individuals perform against company’s process for measuring
Performance Based Compensation
value of jobs to each other relative to their value to organization
Internal Equity
process used traditionally to determine value of jobs relative to each other, identify/define compensable factors of each job most relevant to organization
Job Evaluation
the spread between the minimum and maximum for job grade, narrow for entry level, wide for highest
Pay Range
establishment of baseline for organizational productivity and productivity costs, difference = performance
Improshare
esteem achieved from others, working with talented team
Extrinsic Reward
employer required by court order/tax levy to withhold additional funds from employee paychecks, satisfy debt owed (child support/back taxes)
Wage Garnishment
- prohibits employers from terminating employees whose wages are garnished for one debt with multiple garnishments
- sets limit on amount garnished any one week
- defines how disposable earnings are to be calculated
Title III of Consumer Credit Protection Act
validating existing job descriptions in order to identify the external market rate for each position
Benchmarking
Security & Exchange Commission Requirements
- disclose how executive pay compares to general pop
- annually report on compensation packages of top 5 executives
occurs when new employees hired at rate of pay greater than incumbents for similar skills, education and experience
Wage Compression
identify key benchmark positions, match to job, classify according to value on vertical scale, associated with grade on hierarchical salary structure
Classification Method
