What are various types of compensation also explain compensation duties and responsibilities?

What is compensation What are various types of compensation duties and responsibilities?

Compensation refers to as a wide range of financial and non-financial rewards given to employees for their services rendered to the organization. It is paid in the form of wages, salaries and employee benefits such as paid vacation, insurance, maternity leave, free traveling facility, retirement benefits, etc.

What are the types of compensation?

The Four Major Types of Direct Compensation: Hourly, Salary, Commission, Bonuses. When asking about compensation, most people want to know about direct compensation, particularly base pay and variable pay. The four major types of direct compensation are hourly wages, salary, commission and bonuses.

What are the functions and responsibilities of a compensation program?

Compensation Management includes various areas such as job evaluation, surveys of wages and salary analysis of relevant organisational problem, development of suitable wage structure, framing of rules for administering wages and salaries, wage payment, incentive, control of compensation cost etc.

What are the five types of compensation?

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  • 5 Different Types of Sales Compensation Plans. Talent & Recruitment. …
  • Straight Salary. Straight salary sales compensation plans aren’t very common, but they do have a place in some organizations. …
  • Salary plus Commission. …
  • Commission Only. …
  • Territory Volume.
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What are the 3 types of compensation?

Different types of compensation include:

  • Base Pay.
  • Commissions.
  • Overtime Pay.
  • Bonuses, Profit Sharing, Merit Pay.
  • Stock Options.
  • Travel/Meal/Housing Allowance.
  • Benefits including: dental, insurance, medical, vacation, leaves, retirement, taxes…

What are the 4 components of compensation?

Total compensation would include all four categories: guaranteed pay (salary and allowances), variable pay, benefits and equity compensation. Remuneration is a term often used to refer to total cash compensation or total compensation.

What are the two types of employees compensation?

There are two basic types of compensation: direct and indirect. Direct pay is the wage or salary received by the employee; indirect pay consists of various employee benefits and services.

What is the compensation management write concept and types of compensation management?

Compensation management is the process of managing, analyzing, and determining the salary, incentives, and benefits each employee receives. Compensation managers aim to attract, retain, and engage employees by offering broad and competitive compensation plans within the company budget.

What do you understand by compensation function explain the nature and objectives of compensation?

Compensation is the human resource management function that deals with every reward individuals receive in exchange for performing an organizational task. The consideration for which labor is exchanged is called compensation. Compensation is what employees receive in exchange for their work.