HR 11,12 ,13 Flashcards
(12 cards)
What are Total Rewards?
Everything employees receive for their work —
both monetary and non-monetary.
Monetary: Salary, bonuses, benefits
Non-monetary : Recognition, development, job security
What is Base Pay?
Fixed wage or salary paid regularly, not based on performance.
Paid for simply doing the job
Usually set monthly or hourly
What is Job Evaluation?
A method to rank jobs inside the company and decide fair pay.
Know-how: Skills needed
Problem-solving: Complexity of decisions
Accountability: Level of responsibility
What are Pay Surveys?
Tools to compare pay for similar jobs in other companies.
Helps match external market pay
Focuses on benchmark jobs (e.g., admin, sales)
What is Variable Pay?
Extra pay based on performance.
Individual or group-based
Includes bonuses, commissions, profit sharing
What are Individual Incentives?
Rewards for personal results or achievements.
Bonus: For hitting targets
Commission: % of sales
One-time rewards: For ideas, skills, or projects
What are Organizational Incentives?
Rewards based on team or company performance.
Group bonuses: When teams hit goals
Profit sharing: Split company profits
Stock options: Right to buy shares at a fixed price
What are Employee Benefits?
Indirect pay that supports employee well-being.
Can be required or optional
Includes insurance, paid leave, vouchers, etc.
What are Legally Required Benefits?
Benefits employers must provide by law.
Social security: Retirement, health
Paid leave: Vacation, maternity/paternity
Healthcare & unemployment coverage
What are Optional Benefits?
Extra perks offered voluntarily by employers.
13th month salary: Extra month of pay
Meal vouchers: Pay for workday meals
Other perks: Company car, gym, discounts
What factors affect compensation decisions?
Legal rules: Minimum wage, overtime laws
Market competition:
Product market: Keep labor costs low
Labor market: Offer enough to attract good talent
How do companies set fair and competitive pay?
Use job evaluations to ensure fairness inside the company
Use pay surveys to match outside market pay
Combine both to create a base pay structure
