Compensation
And Benefits
Reported by:
Arceyn Aquino
Jean Feridel Juarez
Definition and
Importance
Compensation: refers to the total
monetary and non-monetary
payments provided to
employees in return for their
work. This includes salaries,
wages, bonuses, and
commissions.
Monetary Compensation:
Direct financial payments such as
salaries, hourly wages, bonuses, and
commissions. These payments are
critical as they provide the primary
income for employees.
Non-Monetary Compensation: Indirect
financial payments or other forms of
value, including benefits such as
health insurance, retirement plans,
and paid time off. These contribute to
employee satisfaction and well-being.
Benefits: are non-wage
compensations provided
to employees, which can
include health insurance,
retirement plans, paid
time off, and other perks.
WHAT ARE
THESE
BENEFITS?
Health Benefits: Medical, dental, and vision
coverage are essential for ensuring employees'
health and well-being.
Retirement Benefits: Pension plans and 401(k)
plans help employees save for retirement,
providing financial security for the future.
Work-Life Balance Benefits: Paid time off,
flexible working arrangements, and family
leave help employees balance their
professional and personal lives.
Other Benefits: Tuition reimbursement,
employee assistance programs, and
transportation benefits support employees
in various aspects of their lives, contributing
to their overall satisfaction.
Tuition Reimbursement:
Financial assistance for continuing
education to support employee
development.
Employee Assistance Programs (EAPs):
Support services for personal and
professional issues.
Transportation Benefits:
Subsidized commuting costs and
parking allowances.
LEGAL CONSIDERATIONS
Compliance with Labor Laws and
Regulations:
Ensuring adherence to relevant laws
to avoid legal issues and penalties.
Fair Labor Standards Act (FLSA):
Governs minimum wage, overtime
pay, and child labor to ensure fair
treatment of employees.
Equal Pay Act: Requires equal pay for
equal work, promoting gender pay
equity.
Employee Retirement Income Security
Act (ERISA): Regulates employee benefit
plans to protect employees' retirement
income.
Objectives of Compensation and
Benefits
Attracting and Retaining Talent: Competitive
compensation and benefits packages are essential to
attract and retain high-quality employees.
Competitive Pay: Ensures the organization
remains attractive to potential employees by
offering salaries and benefits that are competitive
with the market.
Comprehensive Benefits: Encourages employee
loyalty and reduces turnover by addressing
various needs and preferences.
Motivating Employees and Improving
Performance:
Compensation and benefits can be
designed to incentivize and reward high
performance.
Performance-Based Bonuses: Directly linked
to individual or team performance,
encouraging employees to exceed their
goals.
Recognition Programs: Acknowledging and
rewarding exceptional work to boost morale
and motivation.
Components of Compensation
Base Pay: The fixed salary or hourly wage
paid to employees.
Salary: Fixed annual compensation providing
stable income for employees.
Hourly Wage: Compensation based on hours
worked, offering flexibility for part-time or
variable-hour employees.
Variable Pay: Additional compensation based
on performance, such as bonuses, incentives,
and commissions.
Bonuses: One-time payments based on
performance or achievement of specific
goals, providing direct rewards for
accomplishments.
Commissions: Payments based on sales or
other specific metrics, incentivizing
employees to achieve higher results.
THANK
YOU
