Compensation and Benefits

• It is defined as the process of determining the relative worth of jobs to determine pay structure.

  Job evaluation systems
• A pay system where individual jobs are compared with every other job, based on a ranking system and an overall score is given for each job, determining the highest-valued job to the lowest-valued job.

  Paired Comparison
• Every job is classified and grouped based on the knowledge and skills required for the job, years of experience, and amount of authority for that job.

  Job Classification System
• It determines the value of a job by calculating the total points assigned to it. 

  Point-factor system
• The points given to a specific job are called 

  compensable factors
• This proprietary job evaluation method focuses on three factors called know-how, problem-solving, and accountability.

  Hay-profile method
• This is the process of setting the pay scale for specific jobs or types of jobs.

  Pay Grading
• In this model, each manager makes a decision about who should be paid what when that person is hired.

  Management fit model
• salary levels are based on an employee’s skills, as opposed to job title.


  Skill-based pay
• It looks at the employee’s traits or characteristics as opposed to a specific skill set.

  Competency-based pay
• This type of system provides employees with a pay basis but then links the attainment of certain goals or achievements directly to their pay.

  Variable Pay System
• It enables companies to ensure that employees are paid fairly and without bias within the confines of a company. This sort of pay includes all perks, including the employees’ income and health-related benefits.

  Direct compensation
• Employees are motivated indirectly via indirect compensation. It does not entail a direct movement of funds between the two parties. Instead of receiving cash rewards, employees are assisted with various other helpful activities. It eventually fosters a sense of belonging and admiration by the firm, deterring people from quitting the corporation.


  Indirect compensation
• It is the bare minimum of money that an employer pays to their employees, excluding any incentives or overtime.

  Fixed Pay
• It is a payout from an employer that is based on an employee’s success and the company’s general performance.

  Variable Pay
• Stock options and stock options are sometimes included in employee remuneration packages. These are non-cash assets that signify ownership of the company.


  Equity compensation
• It is the financial value that a team member receives in exchange for their services.

  Compensation
• These are nonmonetary, additional perks or rewards that a company provides for a team member.

  Benefits