Flashcards in Chapter 12 Deck (16):
What is fixed pay?
Base amount of money regardless of performance.
What is variable pay?
Could be bonuses, productivity, additional to fixed pay.
What are the types of incentive plans?
Operationions(retail,hospitality,logistics), senior managers/executives(salaries), salespeople(comissions),
What is Merit Pay?
Pay based on group, and organizational performance. Sometimes, the pay is split in 1/1/1 so its indv,group,and org.
What is ESOP (Employee Share Purchase/Stock Ownership Plan)?
To encourage employees to purchase stocks, partnership, make sure you produce, so you benefit from the stocks and you are obligated to benefit from them.
What is profit sharing?
All people get a piece of the pie.
What is piecework?
Straight: Four calls an hour, more is extra. Per unit of = pay.
Garanteed: More if you go higher
Differential: Percentage instead of base rate of your base pay.
Cons: Quality, Increase Standard, Resistance
What are team or group incentives?
Group pay, does not factor indivudal contribtions.
What are short term incentives?
Short term incentivies are stock options, performance share units plan, appropriate link to strategy. Bottom line, senior management.
What are employee benefits?
Indirect finanical payments given to employees.
Include supplementary health and life insurance, vacation, pension, education plans, and discounts on company products.
Becoming larger part of total compensation
Useful in attracting talent
Increase work productivity
What are government mandated benefits?
Employement Insurance (EI, lose job no fault of yours)
Pay on termination of employement(serverance pay, in addition to EI, if you work X years.)
Leaves of absence
Canada/Quebec Pension Plan (CPP/QPP)
Worker's compensation(employer's comepensation can be excluded)
Vacations and holidays
What is bereavement leave?
Family member dies, etc.
What is compassionate care leave?
Family member gets sick, etc.
What is sabbaticals?
a period of paid leave granted to a university teacher or other worker for study or travel, traditionally one year for every seven years worked.
What are the types of retirement benefits?
Defined Benefit Pension Plan (GOOOOOD)
Benefits based on earnings and eyars of service
Defined Contribution Pension Plan
Benefits based on amount of contribution and value of fund (GAMBLING)
Registered Retirement Savings Plan
Contribute out of your own money, Up to 18% of your pay. Taxable income is lower if you do.