|Compensation and Benefits are often referred to total rewards. It can be broken down further into two categories. Monetary and non-monetary
|includes any cost incurred for the benefit of the employee to include 401K, medical care premiums
|could be defined as things such as work life balance and flex schedules.
|a tangible incentive for people to do things
|motivation that people get from challenges or exciting assignments. Most of these rewards are not tangible
|payments made to the employees associated with wages and salaries
|consist of things such as insurances premiums, vacation and sick pay, etc.
|Constraints of a company could possibly prohibit an employers willingness or ability to pay
|how fair the internal process is for determining pay and bonuses, how they are distributed and who is responsible for making those decisions.
|how close does pay match actual performance
|This refers to how open employers and employees are to talking about pay
|a program that comps above the market rate
|LEAD THE MARKET
|a program that’s average to the market to level the playing field with competitors
|MEET THE MARKET
|most companies will do this below the market rate because of financial reasons
|LAG THE MARKET
|this structure the company comp program by rewarding performance. In this program, employers refer to this type of system as line of sight- basically employees know whether their performance is good or bad and how it impacts their pay.
|PERFORMANCE BASED PHILOSPHY
|This philosophy creates a comp program based on seniority. While it seems to suggest that employees will remain loyal, it also suggests that performance will become secondary to seniority.
|is used to determine how the resources available for rewards programs can be used to best advantage in attracting, motivating, and retaining employees.
|requires HR professionals act ethically and with integrity when they are acting on behalf of their organization. They must act with a high level of trust and confidence and must avoid conflicts or favoritism.
|These factors could include unemployment, cost of living and inflation. These factor also influence the cost of labor or the cost to attract and retain employees
|made up of any sources from which an organization recruits new employees; a single organization may find itself recruiting from several different labor markets depending on the availability of skills for different positions.
|First federal legislation to regulate minimum wage
|DAVIS BEACON ACT (1931)
|This formula is used In profit sharing plans that determines how the profit is allocated. Normally based on seniority and performance
|This method is used in computing the cost of benefits by calculating the total annual cost of each benefit
|ANNUAL COST METHOD
|These type of jobs are used in the point method to determine a wage structure. They are often called Key Jobs.
|This is not apart of an employee's base pay and often paid as an incentive for outstanding performance
|Under this plan, employees choose the benefits they want. They are subject to certain limitations and total cost constraints
|CAFTERIA BENEFIT PLANS
|This provision allows employees to carry over a certain amount of unused vacation days into the next leave year. Any unused days above the limit are lost.
|This plan allows employees to decide how they want their funds to be invested and makes them more portable when an employee moves to a new company
|CASH BALANCE PLANS
|This profit sharing plan makes payments to employees at the end of each pay period
|CASH-PROFIT SHARING PLAN
|This plan is similar to vacation buy back. It allows employees to receive their daily earnings for all unused vacation up to a certain limit. Anything about the limit is lost.
|CASH IN PROVISIONS
|( This figure shows the costs of benefits per employee, per hour.) Calculating the cost of employee benefits by dividing the total annual cost by the number of employee hours
|CENTS PER HOUR
|This is used to develop a wage structure. Determine Job worth
|An employee becomes fully vested in a retirement plan after a specified period of time.
|This law requires that employers with 20 or more employees extend health insurance benefits to terminated employees, reduced hours and their family members
|COBRA Consolidated Omnibus Budget Reconciliation Act
|This provides for automatic increases in the level of pay based on the rate of inflation
|C.O.L.A Cost of living adjustment
|This number compares a persons pay with the midpoint of the pay range. It is pay divided by the midpoint times 100
|These factors justify paying one job more than another. Responsibility, education and skill are usually considered the most important
|Stock purchased plans designed to compensate employees
|Independent contractors, part time workers leased employees and subcontractors are also called
|With these plans, employers and employees contribute to the pension fund
|CONTRIBUTORY PENSION PLANS
|This costing method divides the total annual cost of each benefit by the number of employees receiving the benefit
|COST PER EMPLOYE PER YEAR
|This profit sharing plan holds an employees share until a later period like retirement
|DEFERED PROFIT SHARING PLAN
|This is a notice from employers to employees within 14 days after a qualifying event describing the COBRA coverage and premiums
|A program that provides counseling to employees with problems such as marital conflict, indebtedness, alcoholism and drug abuse
|EMPLOYEE ASSISTANCE PLANS (EAPS)
|This theory suggests that people compare their inputs and outputs with those of others. Inputs are things such as knowledge, skills, training and effort. Output includes compensation, benefits, etc.
|Additional income and benefits provided for employees who are transferred to a foreign country
|This theory describes how people measure their ability to do something. "If I study really hard, will I pass this class" Two other components of this theory are Instrumentality and Valence
|This method develops a wage structure in which key jobs (benchmarking) are compared with other jobs, factor by factor to determine how much money should be paid for each factor
|These responsibilities are those of the person who manages a pension fund or act on behalf of and organization
|Pay for performance plans such as a Scanlon plan, Rucker Plan or Improshare plan.
|This happens when an employee becomes partially vested in a retirement plan after an initial period, then becomes vested in an additional percentage each year until fully vested
|This job evaluation method uses three compensable factors. They are known as know how, problem solving and accountability, to determine how many point should be assigned to different jobs. Also known as the HAY METHOD
|GUIDE CHART PROFILE METHOD
|Health-care plans that contract with health-care providers to purchase services at a discounted rate.
|HEALTH PLAN PURCHASING COOPERATIVES
|Someone who owns more than five percent of the company or earns over a specified amount.
|HIGHLY COMPENSATED EMPLOYEES
|This type of organization provides health care services emphasizing preventative medicine at a fixed monthly rate.
|Health Maintenance Organization (HMO)
|These pay increases are based on performance and length of service
|This program allows employees to buy shares of the company's stock usually at a reduced price
|These benefits are provided by employers as a result of a labor agreement that provides supplemental benefits to employees who are laid off
|SUPPLEMENTAL UNEMPLOYMENT BENEFITS (SUB)
|What are the 3 labor markets?
|-Blue Collar and Nonsupervisory White Collar -Professional and Technical -Supervisors and Managers
|This happens when employees receive pay increase to the point that their salaries are at the top of their pay ranges
|This assistance is provided to an employee who is transferred to a new location. Examples of this include moving allowance, selling a home, etc.
|This compensation is provided to employees who are injured on the job regardless of who was responsible for the accident.
|This method requires that each program be justified from the group up each fiscal year.
|ZERO-BASED BUDGETING (ZBB)
|This order instructs a plan administrator on how to pay all or a portion of a pension plan benefits to a divorced spouse or child
|QUALIFIED DOMESTIC RELATIONS ORDER (QDRO)
|An individual who is eligible for continuation of benefits coverage under COBRA which could be an employee, employee spouse or employee's dependent children.
|A retirement or stock option plan that has been approved by the IRS for special tax treatment
|An event that triggers the beginning of COBRA coverage
|This type of pay falls below the minimum of the salary range. This may happen because an employee is not completely qualified for a position.
|This pay falls above the maximum for the salary range. This generally happens if someone gets demoted without a decrease in pay
|This occurs when new employees are hired at a rate of pay greater than that earned by incumbent employees for similar skills, education and experience
|This is a traditional pension plan in which the employer provides a specific benefit upon retirement
|This act was created by Congress to set standards for private pensions and some group welfare programs such as medical and life insurance
|Employee Retirement Income Security Act (ERISA)