In a world where talent is at a premium, compensation is an integral part of retention strategy.
The combination of the rewards that a company has to offer an employee are called total rewards. Total rewards include compensation and benefits (tangible rewards) and recognition and development (intangible rewards).
There are four different groups that make up the employee compensation and benefits. They are:
- Guaranteed pay: This refers to the monetary reward that has been fixed by the employer to pay the employee. The salary is the most commonly known form of guaranteed pay but others could also include: premiums, cash allowances etc.
- Equity-based compensation: This is a non-monetary reward that an employer gives employees and it usually represents ownership in the company. Stock options are the more commonly known examples of this type of compensation.
- Benefits: These could be cash or non-cash payments that are paid to an employee as add-on compensation. Life insurance, health insurance, company vehicle are all typical examples of benefits that a company could include in the C&B plans.
- Variable pay: This is usually a non-fixed monetary reward that is paid to the employee based on performance or productivity. Incentives and bonuses that employees get as rewards when they meet targets are forms of variable pay.
We work with you to develop compensation plans to help properly motivate and retain your employees.