Employee Compensation and Benefits

total amount of the monetary and non‐monetary pay provided to an employee by an employer in return for work performed as required by the organization.

• Benefits

• Skill Pay

• Variable Pay

• Compensation

compensation other than an hourly wage or salary.

• Compensation

• Variable Pay

• Benefits

• Skill Pay

all jobs in a particular category are assigned a specific pay category

• Competency

• Broadbanding

• Point Factor

• Paired Comparison

Employers that want to succeed in this increasingly competitive environment must have a well-designed compensation plan that motivates employees, controls compensation costs, and ensures equity.

• True

• False

A complete compensation package can include pay, health‐ care benefits, and other benefits, such as 401(k) plans.

• True

• False

A market compensation policy is to pay below the going rate for a particular job—basically, one that pays similarly to what the market offers.

• True

• False

The value of a job is a major factor when determining pay.

• True

• False

It is the process of setting the pay scale for specific jobs or types of jobs.

• Variable pay

• Skill Pay

• Overtime

• Pay Grading

salary levels are based on the employee’s skills as opposed to the job title

• Skill Level Pay

• Variable Pay

• Overtime

• Compensation