LO1

• Total Compensation Model


  also known as a total rewards approach
• Total Compensation Model


  has become dominant in the compensation field
• Total Compensation


  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 Compensation System(CBSSSWWWAAFWD)


  1. Compensation​

  2. Benefits​

  3. Social interaction​

  4. Security​

  5.Status/recognition​

  6. Work variety​

  7. Workload​

  8. Work importance​

  9.Authority/control​

  10. Advancement​

  11. Feedback​

  12. Work conditions​

  13. Development​
• Compensation​


  Wages, commissions, and bonuses​
• Benefits​


  Vacations, health and dental insurance​
• Social interaction​


  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.