Question

5. List the methods for a compensation structure.

6. What other ways are used to determine wages?

7. List the different alternatives of incentive plans.

8. What are employee’s benefits? Explain.


9. Why it is a concern for companies the cost of benefits?

10. List the benefits required by law?



11. What are the options of voluntary benefits?

Answer 1

5. List the methods for a compensation structure.

Method for compensation structure includes combinations of following :

• Salary
• Hourly Wages
• Sales Commission
• Tips
• Stock Options
• Bonuses
• Incentive Pay
• Other Variable Pay
• Benefits (healthcare, paid leave, etc.)
• Non-monetary compensation (recognition, meals, etc.)

6. What other ways are used to determine wages?

Other ways used for wages are :

• Wage differential :A wage differential is defined as the additional amount of income that a given worker must be offered in order to motivate them to accept a given undesirable job, relative to other jobs that worker could perform .
• Performance based : If a worker outperforms a set standard he will be paid premium

7. List the different alternatives of incentive plans.

Different alternative of incentive plans are :

• Knowledge/skill based pay : The employee's pay is linked to the number and type of skills the employee is qualified to perform or to the competencies acquired.
• Gain Sharing/Success Sharing :Gain or success sharing is any unit-wide or organization-wide incentive designed to reward all members for improved performance
• Temporary or Supplemental Pay :Temporary or supplemental pay is compensation that is in addition to, but not part of base pay. It is designated for a period of time for "hot" skills or special project work
• Broadbanding : combining of existing job classifications and ranges into wider pay bands.

8. What are employee’s benefits? Explain.

Employee benefits : Employee benefits, also known as perks or fringe benefits, are provided to employees over and above salaries and wages. These employee benefit packages may include overtime, medical insurance, vacation, profit sharing and retirement benefits .Offering benefits to your employees is important because it shows them you are invested in not only their overall health, but their future

9. Why it is a concern for companies the cost of benefits?

Since cost will have a direct impact on the bottom line therefore it is very important for the company . Cost includes cost of turnover , cost of absentism etc .

10. List the benefits required by law?

Benefits required by law

• Pension
• Employment Leave
• Health insurance
• Work compensation insurance
• These also include paid vacation life and disability insurance (in some states, short-term disability leave is mandatory), 401(k) retirement savings plans, education assistance, wellness programs, and child care assistance.

11. What are the options of voluntary benefits?

Voluntary benefits

Health :Vision insurance , dental insurance, accident insurance

Lifestyle : Financial counselling , legal

Security : Life insurance , Identity theft protection