C202 Chapter 9 Compensation
Indirect financial compensation
(benefits) consists of all the tangible and financially valued rewards that are not included in direct compensation, including free meals, vacation time, and health insurance. (Incentive pay is a popular form of this type of compensation)
Nonfinancial compensation
A type of compensation that includes rewards and incentives that are not financial in nature. This includes flexible work schedules, development opportunities, casual dress codes, and helping employees balance work with other demands.
Financial Compensation
Compensation that is or has monetary value. Can be is both direct and indirect.
Nonfinancial compensation
Development opportunities can be considered a type of _____________.
What are the types of compensation?
Direct Financial Compensation, Indirect financial compensation, & Nonfinancial Compensation
Total rewards
Everything an employee perceives to be of value that results from the employment relationship. Can include Financial and nonfinancial compensation, benefits, physical work environment, organizational culture, professional development, recognition, work-life balance
benefits
Indirect financial compensation is also referred to as ______________.
Severance pay
Julie has just been laid off from her job, and her company has agreed to pay her $15,000 for each year she was with the company. This is an example of ________________.
Severance pay
Pay given to employees upon termination of their employment. Usually how much is received is based on employee's length of eligible employment with the company. (there is no legal requirement to offer this type of pay)
Base pay
Pay that reflects the size and scope of an employee's responsibilities. It is typically reviewed annually reviewing performance & experience, competitive trends, and geographic location of the job. (Annual cost of living-counter the effects of inflation)
Severance pay
The amount of _____________ a departing employee receives is typically based on their length of eligible employment with the company.
What is Compensation?
The exchange relationship between employees and their employers in which employees apply their time and talents to create value for the organization in exchange for tangible and intangible rewards that employees value.
Direct Financial Compensation
The pay an employee receives in the form of wages, salary, bonuses, and commissions. (It is also the largest element of base compensation)
Severance pay
There is no legal requirement to provide __________________.
Indirect financial compensation
__________ include(s) all the tangible and financially valued rewards that are not included in direct compensation, including free meals, vacation time, and health insurance.
Nonfinancial compensation
___________ includes casual dress codes and flexible work hours.
Total rewards
____________ refers to everything an employee perceives to be of value that results from the employment relationship.
Incentive pay
_____________ is a popular form of indirect compensation.
Base pay
_____________ typically reflects the size and scope of an employee's responsibilities.
Base pay
______________ is typically reviewed annually in light of an individual's performance and experience, competitive trends, and the geographic location of the job.
Direct financial compensation
_______________ is compensation received in the form of salary, wages, commissions, stock options, or bonuses.
Direct financial compensation
________________ is/are the largest element of base compensation.
