Compensation and benefits articles
- Compensation is important for employee retention because it helps companies avoid the high costs associated with turnover.
Competitive compensation packages also help organizations attract and keep top talent and can lead to greater employee satisfaction, making it more likely employees will stay. - Fair compensation and benefits can lead to greater job satisfaction, meaning employees are happy in their job position and are less likely to want to move jobs.
Not only does this result in a lower employee turnover rate but it can also make certain positions in the workplace appear more favorable among employees. - Typically, cash compensation consists of a wage or salary, and may include commissions or bonuses.
Benefits consist of retirement plans, health insurance, life insurance, disability insurance, vacation, employee stock ownership plans, etc.
Compensation can be fixed and/or variable, and is often both.
Jun 18, 2023“Compensation” and “benefits” refer to the package of rewards provided by employers to their employees in exchange for their services.
How important is compensation to job satisfaction?
So while factors such as:
respectful treatment and trust remain important compensation is a critical job satisfaction factor—especially among Millennial and Gen X employees.” This may explain why employees rated compensation/pay the second most important contributor to job satisfaction, jumping from the fourth position in 2014. What are the three types of compensation plans?
Political figures, union leaders, and consumer […] Using the results of a survey of 380 companies in 34 industries, this author examines three basic types of compensation plans:
salary commission and combination (salary plus commission). What is compensation and benefits & why is it important?
Compensation and benefits have long been key drivers in recruiting, attracting and retaining employees.
Human resource professionals are integral to creating a compensation and benefits model that attracts talent, enhances engagement and retains employees—all while adhering to appropriate regulations and disclosure rules.
How important is compensation to job satisfaction?
So while factors such as respectful treatment and trust remain important, compensation is a critical job satisfaction factor—especially among Millennial and Gen X employees
” This may explain why employees rated compensation/pay the second most important contributor to job satisfaction, jumping from the fourth position in 2014
What are the three types of compensation plans?
Political figures, union leaders, and consumer […] Using the results of a survey of 380 companies in 34 industries, this author examines three basic types of compensation plans: salary, commission, and combination (salary plus commission)
Why do employers need a competitive benefits package?
“As the economy continues to improve and job seekers become more confident in securing new positions, organizations must design competitive benefits packages to attract and retain top talent,” said Lee
Employees responded as shown below when asked how satisfied they were with specific benefits:
Deferred compensation is an arrangement in which a portion of an employee's income is paid out at a later date after which the income was earned.
Examples of deferred compensation include pensions, retirement plans, and employee stock options.
The primary benefit of most deferred compensation is the deferral of tax to the date(s) at which the employee receives the income.
Act of providing a person with things of economic value
Financial compensation refers to the act of providing a person with money or other things of economic value in exchange for their goods, labor, or to provide for the costs of injuries that they have incurred.
Military pay or military compensation is the pay system by which members of the military are compensated for their participation in the military.
Law related to income replacement
The New York Disability Benefits Law (DBL) is article 9 of the Workers' Compensation Law and creates a state disability insurance program designed to provide employees with some level of income replacement in case of disability caused off-the-job.
In the United States, the question whether any compensation plan is qualified or non-qualified is primarily a question of taxation under the Internal Revenue Code (IRC).
Any business prefers to deduct its expenses from its income, which will reduce the income subject to taxation.
Expenses which are deductible (qualified) have satisfied tests required by the IRC.
Expenses which do not satisfy those tests (non-qualified) are not deductible; even though the business has incurred the expense, the amount of that expenditure remains as part of taxable income.
In most situations, any business will attempt to satisfy the requirements so that its expenditures are deductible business expenses.
