Compensation and Benefits

Question 1

Term Definition

Question 2

commissions

Answer 2

Earnings based on the number of total sales.

Question 3

simplified employee pension plan

Answer 3

A retirement plan that involves employers setting aside money in retirement accounts for employees.

Question 4

geographic pay

Answer 4

Extra money paid to employees in one location to account for the higher cost of labor$ or the higher cost of living$ relative to other locations where the company has employees.

Question 5

work-life balance

Answer 5

The concept of focusing an equal amount on professional duties and those activities that provide personal fulfillment.

Question 6

overtime

Answer 6

Pay at 1 . 5 times the base rate that must be paid to hourly workers who work more than 40 hours in one week.

Question 7

stock options

Answer 7

The right to purchase shares in a company for a set price at some point in the future.

Question 8

benefits

Answer 8

Various non-wage forms of compensation provided to employees in addition to their normal wages or salaries.

Question 9

compensation

Answer 9

Employee or management wages and other financial benefits earned from labor.

Question 10

total rewards

Answer 10

The sum of all compensation and benefits paid to an employee$ including pay; benefits; incentives; and nonmonetary compensation such as professional development$ career opportunities$ camaraderie$ personal satisfaction$ flextime$ and telecommuting.

Question 11

broadbanding

Answer 11

The use of a job grading structure with extremely wide salary bands.

Question 12

group incentive pay

Answer 12

Pay rewarding a group for exceeding a collective goal.

Question 13

competitive wages

Answer 13

Pay that is comparable to what is earned by other workers in the same geographic area who are doing the same type of work.

Question 14

on-call pay

Answer 14

Additional money paid to a worker while they are “ on call$ “ i. e. $ not actively working but available to be called into work if needed.

Question 15

shift pay

Answer 15

Additional pay given to workers to compensate them for working on less desirable shifts$ i. e. $ the second or third shift.

Question 16

minimum wage

Answer 16

The lowest hourly rate of pay that an employer can pay to an employee who is covered by state or federal wage-and-hour laws.

Question 17

compressed work schedules

Answer 17

This approach to scheduling allows employees to do the same number of hours of work but in fewer days than would be expected using a standard 5 -day workweek. For example$ employees may work 1 0 hours a day$ but only 4 days a week. Or employees may work 9 hours a day$ but take every other Friday off.

Question 18

incentive pay

Answer 18

Pay in addition to the base salary$ which is intended to encourage performance.

Question 19

profit-sharing

Answer 19

System in which employees receive a share of the net profits of the business.

Question 20

base rate

Answer 20

Wages or salary before overtime pay$ bonuses$ or other incentive pay is considered.

Question 21

pay for performance

Answer 21

Any compensation system that links pay and performance.

Question 22

telecommuting

Answer 22

A work arrangement that permits an employee to work outside the office. Employees who telecommute may work from home or in public spaces like coffee shops or libraries.

Question 23

wage compression

Answer 23

The inequity that arises when new employees demand and receive higher wages than current employees who are performing the same job.

Question 24

pay range

Answer 24

A range of potential compensation amounts for employees who hold a specified position.

Question 25

job pricing

Answer 25

The process of assigning value to particular employment positions.

Question 26

hazard pay

Answer 26

Additional money paid to compensate employees who are assigned to work in a dangerous location or in hazardous circumstances.

Question 27

merit pay

Answer 27

Pay based on exceeding objectives or performance standards.

Question 28

differential pay

Answer 28

Extra pay also known as premium pay given to a worker to compensate for the danger inconvenience or added cost of a specific job or assignment.

Question 29

compa-ratio

Answer 29

A measure of how an individual employee#s pay relates to the pay ranges established by the organization and the larger market. Defined as the employee#s salary divided by the midpoint of the salary range for that position.

Question 30

maternity leave

Answer 30

Paid leave given to a female employee for the birth of her child.

Question 31

sabbatical

Answer 31

An extended period of leave from one#s job especially for rest to acquire new skills or training etc.

Question 32

flexible scheduling

Answer 32

A way of scheduling that gives an employee a lot of power to determine when and where they work.

Question 33

skill pay

Answer 33

Pay that rewards employees for acquiring new skills.

Question 34

pay grades

Answer 34

Bands of minimum and maximum salaries offered for jobs valued at similar rates.

Question 35

workers# compensation

Answer 35

A type of insurance that is allotted to employees who are injured at or get an illness from their workplace.