Guide to Understanding Job Compensation and Benefits
Compensation and benefits do not always come in the form of monetary values in companies. Providing compensation and benefits to employees is a known factor to employers, upholding the quality of work. Compensation and benefit can range from a wide range of indirect and direct factors. The one that I will discuss, however, direct compensations and benefits primarily.
Having some form of compensation and benefit can help sway employees from one company to another. Salaries play a significant role in employees accepting and attracting employees to a company. When you have definitely received the job, here are some compensation and benefits packages that would make the job an even sweeter deal. Companies make compensation policies an integral part of their corporate culture.
Compensation and benefit are not the first things that most employees search for when entering into a new section of their lives. However, salary, compensation, and benefits should be some of the key proponents of you accepting the job to begin with.
Forms of Employees Job Compensation and Benefits
Salary being the most important form of compensation within the workplace, as it is illegal in most countries in the world not to compensate workers for their wages. Unless the work done is not-profit, companies must duly compensate their staff for work fulfill. Receiving a salary is the most common way that trade-in time for skilled workers.
Salary and wages are dependent on the values of the position and the market price of said position. Though wages and salaries are the most common form of monetary and direct compensation forms, there are not the only ones. Commission and bonuses fall under direct compensation.
Commission as a Job Compensation and Benefit
One use of commissions comes in the form of sales, such as a Realtor. The intent of the commission is a form of incentive for individuals to maximize their work. When a commission is applied, it can either be a straight Commission or a combination of base salary and commission.
Commissions, therefore, have been used in the implementation of specific targets or quotas that are agreed upon by management. I would highly advise that if you are not a sales rep Taking on a position where a commission is the primary source of your income is not advisable.
Bonuses as A Job Compensation and Benefits
Besides the use of wages, bonuses come as another common form of compensation used in the workplace. For an individual to obtain bonuses, goals must be realistic and closely align with the company values. Bonuses are usually given with a new job title or even at Christmas parties. Nevertheless, bonuses can be used as a direct drive to support company needs and a motivational factor for employees.
Paid Time Off
Paid time off, such as PTO, sick days, and vacation days, are some of the creams of the crop when it comes to benefits from companies. If you are not receiving vacation, sick days, or even POT from your employment source, it might be time to consider other means of employment. However, these benefits have a certain amount of days as a form of limitation that helps employees not abuse sick day leaves. Simultaneously, these limitations can be a disadvantage, especially when employees are pregnant and have terminal illnesses.
Health insurance makes up one of the most crucial factors that, at times, can be the decision between an employee staying on the job and leaving. Employer insurance coverage can also play an essential role in employee recruitment. However, studies show that employees are more content with the employer’s insurance coverage; however, the cost of said insurance is exceptionally high. One crucial factor in having insurance as an employee benefit is that it also protects employees and their families if an accident happens. One of the commonly offered benefits by employers, insurance can support various foster services such as productivity or even boosting morals.
For most young individuals, life insurance is never at the top of the list when it comes to a company’s benefits. Employer-provided life insurance would help families manage expenses after a loved one has passed. Providing employer base Life Insurance in some ways can attract and retain talent in the workforce.
As the marketplace increases, employers must provide top-notch benefits to attract employees to their companies, and life insurance is one way to do so. As the demographic of the workplace changes, millennials make sure that their wants and needs are met within a company to keep them satisfied. Financial wellness is another aspect to be considered when employers offer life insurance benefits to their employees.
The Retirement benefits or accounts are arguably the most valuable benefit offered by employers today as it enables workers to be financially prepared for retirement.
These Retirement benefits plans intend to provide you with an income once you have stopped working or a company. This is often during the later aspect of your life. Though a company may offer you retirement benefits, it is essential to know what other options regarding retirement you’ve got; however, here are some benefits of setting up a retirement plan:
- Retirement assets carried over from one employer to another.
- Credit may be available to some employees.
- Employees may be able to improve financial security in retirement.
Besides wages as a form of compensation. Numerous other benefits and compensations methods within a company by employers have been use to retain employees’ happiness. However, direct compensation and benefits do not always use monetary value, though it is a key advantage in various companies. Benefits such as life insurance and retirement are essential means in a company regarding employee happiness. With there being a shift in company dynamics, Millennials make sure that their employers will consider their needs and wants. By doing this, they can implement benefits and compensation that suit such needs in the long run.