Employee Remunerations
Employee Compensations (hereinafter, the Lectio) is the second lesson part of the Employment Essentials lesson that introduces its participants to employment and related topics.
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.
Key terms
- Employee compensation (remuneration, total compensation, total employee compensation, compensation and benefits or C&B) is the aggregate of cash compensation and employee benefits that an employee receives or can expect to receive in exchange for the service he or she performs for their employer and/or for his or her time spent on the employer's request. Total compensation may also refer to the total amount of employee compensation.
- Cash compensation. Any monetary reward that an employee receives in exchange for the service he or she performs for their employer and/or for his or her time. Usually, cash compensation includes some combination of (a) guaranteed pay such as wage/salary and/or cash allowances and/or (b) variable pay such as commissions, incentives, and/or bonuses.
- Employee benefit. Any non-monetary reward that an employee receives in exchange for the service he or she performs for their employer and/or for his or her time. 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.
Script
- Employee compensation frequently includes cash compensation 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 compensation may also include variable pay such as commissions, incentives, and bonuses, as well as cash allowances, for instance, to cover transportation expenses.
- 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.
Labor Relations is the successor lectio.
Questions
Lectio quiz
- The answer is recorded for the lectio completion purpose:
- Do you understand the difference between cash payments and benefits? --Yes/No/I'm not sure/Let me think/What is the difference?
