includes everything that the company provides an employee in exchange for working: wages/salary, variable pay, perks and on-site amenities, and status/recognition, as well as benefits.
Components of a Total Reward CompensationSystem(CBSSSWWWAAFWD)
Compensation
2. Benefits
3. Socialinteraction
4. Security
5.Status/recognition
6. Workvariety
7. Workload
8. Workimportance
9.Authority/control
10. Advancement
11. Feedback
12. Workconditions
13. Development
Compensation
Wages, commissions, and bonuses
Benefits
Vacations, health and dentalinsurance
Socialinteraction
Friendly workplace
Security
Stable, consistent position and rewards
Status/recognition
Respect, prominence
Work variety
Opportunity to experience different things
Workload
Right amount of work (not too much, not too little)
Work importance
Is work valued by society?
Authority/control
Ability to influence others; control own destiny
Advancement
Chance to get ahead
Feedback
Receive information to improve performance
Work conditions
Hazard free
Development
Formal and informal training
Wages and salary
known as base pay, form the foundation of compensation systems because they establish the standard of living for employees.