Employee Remunerations

Employee Remunerations (hereinafter, the Lectio) is the fifth lesson part of the Employment Essentials lesson that introduces its participants to employment and related topics.

WorldOpp Pipeline

This lesson belongs to the Introduction to Employment session of the CNM Cyber Orientation. The Orientation is the second stage of the WorldOpp Pipeline.

Content

The predecessor lectio is Student Workers.

Script

Employee compensation frequently includes cash remuneration and employee benefits.

In the United States, the cash part must include the guaranteed pay such as wages or salary. Wages are paid per hour, while salary represents an annual pay. Cash remuneration may also include variable pay such as commissions, incentives, and bonuses, as well as cash allowances, for instance, to cover transportation expenses.

Because of complexity of labor laws, many American companies hire payroll service providers to process their payroll.

The benefits may include paid time off, retirement plan, medical insurance, life insurance, disability insurance, take-resource benefit such as a take-home car, snacks, and tickets, as well as equity-based compensation such as employee stock ownership plans.

While having unstable or insufficient cash flows, startup businesses sometimes offer deferred cash payments or condition their payment on availability of funds. To comply with the labor law, they must offer guaranteed cash payments, but try to keep them as low as possible. To attract highly-skilled and over-performing workers, they need to offer generous ownership options.

Remuneration is a historical name of employee compensation. This name arrived from Latin remunerari, in which the prefix, re-, is for back and the root, -munerari, is for give, serve, and act on duty. The word municipal arrived from the same root. So, remuneration literally means pay back for the service.

Although volunteers compose the CNM Cyber Team, which is the core of the CNM Cyber Workforce, most of the workers who work on CNM Cyber get paid.

Key terms

Employee compensation, Cash remuneration, Employee benefit, payroll service provider, payroll, wages, salary

Closing

Is the difference between cash remuneration and benefits explained well? --Yes/No/I'm not sure/Let me think/Let's move on

Labor Relations is the successor lectio.