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Describe the employee compensation

      

Describe the employee compensation

  

Answers


Faith
Employee compensation refers to all work-related payments, including wages, commissions, insurance and time off. Wages and salaries are the most obvious forms of compensation and are based on job evaluations that determine the relative values of jobs to the organization. Under the hourly wage system, employees are paid a fixed amount for each hour they work. The system is generally used for lower skilled occupations. Salaried employees receive a fixed sum per week or month, no matter how many hours they work. Most professional positions are salaried; the reality is that these jobholders typically work in excess of a “minimum” 40-hour workweek.
Some occupations are compensated through incentive pay programs. Salespeople typically receive commissions based upon the quantities of goods they sell. Some sales compensation plans contain elements of both a salary and commission. A production worker’s pay may be based upon some combination of an hourly wage and an incentive for each “piece” he or she makes. Some employees are offered merit awards as a reward for sustained superior performance. Employee benefits are supplements to wages or pay. Some benefits are legally mandated. Other benefits are optional and help build employee loyalty to an organization, including: Health insurance, pension plans, employee discounts, vacation, sick and personal days, bonuses, profit-sharing and stock options. A top management executive is usually given benefits unique to his or her status. Such additional executive benefits are termed as perquisites/ gratuities/ perks.

Titany answered the question on September 20, 2021 at 11:18


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