Total Rewards Flashcards
What is total rewards?
A package that includes all forms of rewards, which are generally categorized into to components: monetary and non-monetary compensation
What is included in monetary rewards?
All forms of cash compensation, 401(k) matching, medical care premiums, pension plans, PTO, stock options, incentive plants, and employee stock ownership programs
What is an intrinsic reward?
One that encourages individual employee self esteem, such as satisfaction from challenging and exciting assignments.
What is an extrinsic reward?
One is which esteem is achieved from others, such as working with a talented team of peers.
What is included in non-monetary rewards?
Relationships with supervisors, recognition of accomplishments, development and career opportunities, teamwork, work-life balance benefits such as telecommuting, on-site childcare and flex time
What is direct compensation?
Payments made to employees that are associated with wages and salaries (includes base pay, variable compensation, and pay for performance)
What is indirect compensation?
Consists of any employee payments not associated with wages and salaries (includes fringe benefits such as vacation, sick, and holiday pay; insurance premiums paid on behalf of employees; leaves of absence; 401 (K); government-mandated benefits such as Social Security or FMLA)
What is procedural justice?
how fair the internal process and procedures are in determining pay scales are perceived to be
What is distributive justice?
Relates to how closely pay reflects actual performance
What is pay openness?
Refers to the degree of secrecy that exists around pay issues (it’s illegal to prohibit employees from disclosing their pay rates)
What is performance-based philosophy?
Organizations that use compensation to shape a key component of the corporate culture, employee behavior, by rewarding performance or behavior
What is line of sight?
Occurs when employees know that their performance, good or bad, impacts their pay
What is entitlement philosophy?
Rewards seniority or employee longevity
What is compensation strategy?
Used to determine how the resources available for rewards programs can be used to best advantage in attracting, motivating and retaining employees.
What is fiduciary responsibility?
Requires confidence and trust and is one of the highest standards of care imposed on the individual acting on behalf of another individual or entity.
