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    Employee Compensation

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    Vikrant
    Employee compensation includes both monetary and non-monetary benefits provided to employees in exchange for their work. It consists of various components like basic pay, allowances for housing, cost of living adjustments, travel reimbursements, paid time off, insurance programs, commissions, and fringe benefits such as healthcare and vacation. Properly structured compensation assists companies with recruitment, performance, and employee satisfaction.

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    Employee Compensation

    Uploaded by

    Vikrant
    22 views2 pages
    Employee compensation includes both monetary and non-monetary benefits provided to employees in exchange for their work. It consists of various components like basic pay, allowances for housing, cost of living adjustments, travel reimbursements, paid time off, insurance programs, commissions, and fringe benefits such as healthcare and vacation. Properly structured compensation assists companies with recruitment, performance, and employee satisfaction.

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    EMPLOYEE COMPENSATION PPT

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    Employee compensation includes both monetary and non-monetary benefits provided to employees in exchange for their work. It consists of various components like basic pay, allowances for housing, cost of living adjustments, travel reimbursements, paid time off, insurance programs, commissions, and fringe benefits such as healthcare and vacation. Properly structured compensation assists companies with recruitment, performance, and employee satisfaction.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    22 views2 pages

    Employee Compensation

    Uploaded by

    Vikrant
    Employee compensation includes both monetary and non-monetary benefits provided to employees in exchange for their work. It consists of various components like basic pay, allowances for housing, cost of living adjustments, travel reimbursements, paid time off, insurance programs, commissions, and fringe benefits such as healthcare and vacation. Properly structured compensation assists companies with recruitment, performance, and employee satisfaction.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
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    EMPLOYEE COMPENSATION

    Employee compensation is a systemic approach to providing monetary and non-monetary value to the
    employees of an organisation in exchange for the work done. It assists an organisation in terms of
    recruitment, job performance and satisfaction. Some of the components of employee compensation
    include salaries, wages, benefits and rewards to name a few.

    1.Basic Pay
    Basic pay is simply the basic salary obtained by an employee and the amount is dependent on the laws
    of the country and a company’s policy. The basic pay is the proportion of pay that is taxed.
    2.House Rent Allowance
    Some companies provide their employees with accommodation whilst some provide them with an
    allowance for rentals in addition to wages and salaries. In some countries, house allowance is not
    provided at all, instead the salaries that are paid out are meant cover for all the needs of the
    employees. The house rent allowance is calculated based on different forms, but it is commonly
    calculated based on the basic salary.
    3.Dearness Allowance
    In some countries the salaries are adjusted to changes in prices of goods and services. The dearness
    allowance is a component of employee compensation that caters for such. This way employees can
    adapt to the changes in living standards and conditions.
    4.Travel allowance
    Firms provide for leave and travel allowance only when the employees need to travel. Travel allowance
    can be included in the basic salary or as a separate component of employee compensation. Its
    calculations differ from one company to another, but proof of travel is normally required in any
    company. 
    5.Fringe Benefits
    Fringe benefits are non-cash benefits which can be educational assistance, childcare, and
    flexible healthcare cover. Benefits such as company cars, paid vacation and gym
    membership can be included. Nonproduction benefits also make up part of fringe
    benefits. Some companies even go as far as providing entertainment allowances,
    discounted travel tickets and family vacation packages.
    6.Paid Time off
    Paid time off is another component of employee compensation. Employees can still
    receive their salaries when they take vacation leave or sick leave. Depending with the
    position of an employee some are given a privilege leave where they can still receive their
    salaries.
    7.Insurance Programs
    Other benefits which also make up the components of employee compensation include
    health insurance, hospital cover, family health insurance and disability cover among
    others. Some companies financially cover the death of an employee and provide financial
    support to the bereaved families.
    8.Commissions
    Commission may be a component of employee compensation especially for those that
    earn their income based on sales revenue and business development. They are based on
    the sales revenue or profit of a company. Commissions are always a fixed percentage
    agreed upon by the employee and the employer. For some, they can be the only source of
    income especially for people who work in sales. Salespersons may be paid salaries and
    commission or commission only. Depending on the sales targets, commissions can be
    paid out on a monthly or yearly basis

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