In: Operations Management
Please give a new answer not a previously used one. Thnaks
The ypical executive compensation package includes a base salary, bonus, equity appreciation, new equity/option grants, benefits, and perquisites. Should executive compensation be fixed and in alignment with the employees they lead, or should their overall compensation represent a fraction of the organization’s overall growth and success? Share examples in support of your argument.
Compensation and benefits are human resource sanctions that
focus on employee compensation and policy making. Although
compensation and benefits are tangible, there are intangible
rewards such as recognition of life, career and development.
Together, they are referred to as general rewards. The term
"compensation and benefits" refers to discipline as well as
personal rewards.
There are many types of benefits offered to employees, such as paid
leave, various types of insurance, participation in retirement
plans or access to a company car, among others. Some benefits are
obligations set by the government, while others are voluntarily
provided to meet the specific needs of the population. Compensation
plans are generally not provided in cash but form the basis of the
employee’s pay package along with the basic salary and
bonuses.
In the United States, "qualified" employee benefit programs must be
offered to all employees, while "unqualified" benefit plans can be
offered to recruiters or high-paid employees. . When implementing
compensation plans, the Human Resources Department must ensure
compliance with federal and state regulations. Many countries and
states set the right to many minimum benefits, such as minimum
benefits, employer pensions, sick pay, and more.
Employee compensation and compensation are divided into four major
categories:
1. Payment Guarantee - A fixed cash reward (in cash) that the
employer pays to the employee. The most common form of guaranteed
salary is the base salary. Guaranteed payments also include cash
allowance (housing allowance, transportation allowance, etc.),
differential (differential exchange, holiday difference) and
insurance premiums.
2. Variable Wages - A fixed cash reward that an employer pays to an
employee based on a decision, result, or outcome. The most common
forms of variable salary are bonuses and incentives.
3. Benefits - Programs that employers use to supplement employee
benefits such as vacation pay, health insurance, car, company and
others.
4. Equity Compensation - A share-sharing or share-sharing program
that employers use to secure actual ownership in a company that
links employee compensation to the company's long-term success. The
most common example is stock options.
For example, a person who receives a bonus equal to 25% of the base salary will have a salary of 80/20. Organizations often define total cash benefits for people who sell in the marketplace, then they divide the total cash benefits into the main payroll component and the next 70/30 payroll component, while other employees (who Not for sale) may have 90/10 mix for payment.