Total Rewards Flashcards
Job evaluation method in which each job is compared with every other job being evaluated; the job with the largest number of “greater than” rankings is the highest-ranked job, etc.
Paired-comparison method
Combining several salary grades or job classifications with narrow pay ranges into one band with a wider salary spread.
Broadbanding
Extent to which employees perceive that monetary and other rewards are distributed equitably, based on effort, skill and/or relevant outcomes.
Internal equity
Situation where an individual’s performance on the job is the basis for the amount and timing of pay increases; also called merit pay or pay for performance.
Performance-based pay
Situation where an individual’s performance on the job is the basis for the amount and timing of pay increases; also called merit pay or performance-based pay.
Pay for performance (P4P, PfP)
Set the upper and lower bounds of possible compensation for individuals whose jobs fall within a pay grade.
Pay ranges
Provides each incumbent of a job with the same rate of pay, regardless of performance or seniority; also known as flat-rate pay.
Single-rate pay
Used to group jobs that have approximately the same relative internal or external worth and are paid at the same rate or within the same pay range.
Pay grades
Pay based on the quantity of work and outputs that can be accurately measured.
Productivity-based pay
Mandatory or voluntary payments or services provided to employees, typically covering retirement, health care, sick pay/disability, life insurance, and paid time off.
Benefits
Situation in which an organization’s compensation levels and benefits are similar to those of other organizations that are in the same labor market and compete for the same employees.
External equity
Direct and indirect remuneration approaches that employers use to attract, recognize, and retain workers.
Total rewards
Compensation provided on an individual basis in the form of goods or services.
Perquisites
Pay increase given to employees based on local competitive market requirements; awarded regardless of employee performance.
General pay increase
Job evaluation method in which the relative worth and pay structure of different jobs are based on an assessment of their content and their relationship to other jobs within the organization.
Job-content-based job evaluation
Process of determining a job’s value and price for the purpose of attracting and retaining employees by comparing the job against other jobs within the organization or against similar jobs in competing organizations.
Job evaluation
Instruments that collect information on prevailing market compensation and benefits practices (including starting wage rates, base pay, pay ranges, statutory and market cash payments, variable compensation, and paid time off).
Remuneration surveys
Form of direct compensation where employers pay for performance beyond normal expectations to motivate higher performance.
Incentive pay
Job evaluation method that looks at compensable factors (such as skills and working conditions) that reflect how much a job adds value to the organization; points are assigned to each factor and then added to come up with an overall point value for the job.
Point-factor system
Pay rate divided by the midpoint of the pay range.
Compa-ratio
Payments in return for the achievement of specific, time-limited, targeted objectives.
Premiums
Provides each incumbent of a job with the same rate of pay, regardless of performance or seniority; also known as single-rate pay.
Flat-rate pay
All financial returns (beyond any tangible benefits payments or services), including salary and allowances.
Compensation
Unmarried couples, of the same or opposite sex, who live together and seek economic and noneconomic benefits comparable to those granted to their married counterparts.
Domestic partners
