Compensation &
Benefits
Compensation is basically direct payment from employer to employee in exchange of labor, whereas Benefits is basically compensation in indirect ways which many not always be in monetary forms.
Some classic examples for Compensation are Salaries, hourly wages, Overtime pay, Bonuses, Commissions etc.
Benefits on the other hand include Insurances (such as health insurance), Retirement or Pension Plans, Healthcare savings account, Childcare support, Work from home equipment compensation, Meal reimbursement, Flexible working arrangements (including remote, hybrid etc), Employee Recognition Programs.
How do employers fix Compensation & Benefits?
There are multiple ways depending on type of industry, Organisation, Employees & their position within the organisation, although some common ones are:
1.
Employees Years of Experience
2.
His/ Her tenure with the company
3.
Employee’s Education
4.
Employee’s current salary
5.
Current Job title & responsibilities
6.
Location of Job & Cost of living
7.
Availability of supply of qualified candidates
8.
Demand to fit in a particular role
9.
Employee skill sets
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