He was a compensation expert and noted that the organization's compensation program must support strategic plans and actions to develop a competitive advantage in a global economy. 

Total basic salary earned for the year, including overtime, holiday, and night shift differential pay divided by 12. 

These jobs refer to management, professional, and many other higher-level positions within an organization. 

Salary positions where the employee is paid not by the hour but by a specific time interval.

These jobs are paid with a wage, an hourly amount. 

It is a significant concern, so individuals responsible for developing a firm's compensation system must understand how equity perceptions are formed. 

It is analogous to performance appraisal in that evaluators are asked to provide specific ratings on a form. 

This compensation is given to most executive retirement plans as a salary percentage or stock options.

It is a systematic approach to providing monetary value to employees in exchange for work performed. 

The process of analyzing jobs from which job descriptions are developed.

These are things most employers already offer: base pay, stock options, health insurance, dental and vision benefits, retirement contributions, life insurance, paid time off, etc., but also include perks like performance bonuses, company-sponsored training, employee wellness programs, workplace flexibility options, identity theft protection plans, employee discount programs. 

Total rewards programs provide the advantage of centralized administration in all employee-related concerns, including benefits, pay, and training.

It is a concept that describes all the tools available to an employer that may be used to attract, motivate, and retain employees.

A total reward package where most employees, regardless of title or role within the organization, expect their salary. 

This is an employee's base pay (salary). 

This is pay that varies and changes by the level of performance or results achieved.

A total reward package that refers to the health, dental, and vision insurance and retirement savings plans is usually the along with retirement savings plans is usually the set standard for employee benefits. 

A total reward package where flexibility is essential for all generations working today.

A total reward package where high performers want feedback and recognition. 

An advantage of total rewards in an organization where the long-term and complete scope allows a small business to create relatively accurate estimates of how much money it spends on each employee over several years.

It is the comparison of positions within your business to ensure fair pay.

A federal law requires you to consider internal equity, specifically between men and women. 

Refers to establishing and implementing sound policies, programs, and employee compensation practices. 

Refers to the rewards; an employee gets after offering his/her mental and physical efforts, wherein he/she compares his/her worth. Any dissatisfaction may result in a conflict or a dispute.

This term refers to the remuneration paid to the workers appointed hourly, daily, or weekly in return for the service rendered. 

The wage which is above the minimum wage but, below the living wage."

It is that wage which is sufficient to meet the basic need of a worker and his family.

It is the wage that provides some of the comforts of life. It provides certain amenities considered necessary for the well-being of the worker.

The term refers to remuneration paid to the employees appointed monthly or annually in return for the service rendered. 

It is a reward paid in addition to monetary wages that motivates or compensates an employee for performance above the standard. 

This function is to take care of the satisfaction of their psychological and social needs

Are such things as insurance, paid vacation and sick days, pension plans, and employee discounts.

Divided according to two different classifications. First, payment can include base pay, or a set amount that the employee will receive.

Can take many forms, including incentives and commissions.

Applied to all commercial jobs and set the foundation for employee compensation regulation.

Required a minimum pension plan amount for businesses and established a series of tax laws to govern the use of pension plan payments.

Raised the federal wage level, from $5.25 to $7.25 an hour, to better represent state and private wages across the nation. This act will reach completion in 2009.

Are used by the IRS to administer excise taxes to individuals who are believed to have improperly or illegally benefited from a commercial company transaction

There is a current push for legislation requiring some sort of shareholder vote authorizing executive compensation, known as the "Say on Pay" law. This would require an annual vote by all shareholders in the company on compensation methods and amounts.

A common goal shared by many employers. To some extent, the availability and cost of qualified applicants for open positions is determined by market factors beyond the control of the employer.

Formulated by J. Stacy Adams, attempts to provide such an understanding.

Refer to people's perceptions concerning what they contribute to the job (e.g., skill and effort).

Refer to the perceptions that people have regarding the returns they get (e.g., pay) for the work they perform.

Focus on the requirements of the job rather than on the performance of the individual jobholder.

Using this method, jobs are evaluated separately on several criteria called _______.

When employees perceive that their pay is fair, a firm achieves external competitiveness concerning what their counterparts in other organizations earn.

Recently, the payment plans and benefits for the top executives in American business have been questioned.

There are many forms of performance plans for executives, but most involve the company reaching certain goals under the executive's supervision.

It is deferred because the money is set aside in some type of savings account or investment for the executive until it can be accessed. This is different from the retirement package an executive often receives when stepping down.

Subject to tax laws, including the million dollar limit deductible for the company granting the compensation.

most often means extra benefits

means the wages or salaries received

A critical component of both compensation and selection systems, job descriptions define in writing the responsibilities, requirements, functions, duties, location, environment, conditions, and other aspects of jobs.

The process of analyzing jobs from which job descriptions are developed. Job analysis techniques include the use of interviews, questionnaires, and observation.

A system for comparing jobs to determine appropriate compensation levels for individual jobs or job elements. There are four main techniques: Ranking, Classification, Factor Comparison, and Point Method.

Useful for standardizing compensation practices. Most pay structures include several grades with each grade containing a minimum salary/wage and either step increments or grade range.

Collections of salary and market data. May include average salaries, inflation indicators, cost of living indicators, salary budget averages

Compensation will be perceived as fair if it comprises a system of components developed to maintain internal and external equity

A Regular Day

A Special Day

A Special Day, which is also a scheduled Rest Day

A Regular Holiday

A Regular Holiday, which is also a scheduled Rest Day

110% x basic hourly rate

Computing Night Shift Premium, where Night Shift is a Regular Work

110% of regular hourly rate

Computing Night Shift Premium, where Night Shift is a Regular Work

On Ordinary Days (OVERTIME)

On a Rest Day, Special Day, or Regular Day (OVERTIME)

On a Night Shift Ordinary Day

On a Night Shift Rest Day, Special Day, or Regular Holiday

Once an employer has quantified the value of its total rewards package, they can use it to demonstrate the value of the organization's benefits package while talking with potential candidates.

Underutilization of employee benefits is a big concern for many companies.

It's human nature to value things solely on our cost.

The same is true of employee benefits and other rewards.

A more engaged workforce isn’t just a loyal workforce; it’s also a more productive one.

Although total rewards programs have certainly grown in popularity in recent years, you'd be hard-pressed to find two that are completely identical.

Implementing a total rewards program doesn't mean that an employer has to throw out any of the other rewards or benefits it's currently offering.

After identifying what rewards will be included in the program, the next step is to get the word out to employees.

This last stage of the implementation process is both the most important and the most often overlooked.

Total rewards systems map out ostensible paths for an employee's entire career based on a basic template created by a business for its specific program.

Total rewards programs provide a direct incentive for employee performance.

The long-term and complete scope of total rewards programs allow a small business to create relatively accurate estimates of how much money it spends on each employee throughout a number of years.

One of the most significant disadvantages to having an employee reward program is how employees perceive certain rewards and, in the case of highly compensated executives -how the general public perceives them.

Based on the size of your workforce, your organization's compensation structure, and your industry, some employee reward programs can be cost-prohibitive.

Organizations that implement rewards programs that increase year after year risk employees believing they are entitled to ever-increasing bonuses and rewards for simply doing their jobs.

Developing an employee rewards program to improve employee retention can be problematic, mainly because many employees cite ineffective leadership as

the reason for resigning.