Professional Documents
Culture Documents
and Benefits
EBENEZER ADUTWUM
9- 1
Learning Objectives
⚫ Rewards
⚫ Incentives
⚫ Things of value
9- 3
Pay Surveys
9- 4
Wages Versus Salaries
⚫ Wages generally refer to
hourly compensation paid
to operating employees.
The basis for wages is
time.
⚫ Salary is income paid to an
individual on the basis of
time.
⚫ A maturity curve is a
schedule specifying the
amount of annual
increases a person will
receive. 9- 5
Determining What to Pay
⚫ Pay-for-knowledge
involves compensating
employees for learning
specific information.
⚫ Skill-based pay
rewards employees for
acquiring new skills.
9- 7
Wage and Salary Administration
9- 8
Pay Secrecy
9- 9
Pay Compression and Pay Inversion
9- 12
Additional Benefits
⚫ Wellness programs
concentrate on keeping
employees from
becoming sick rather than
simply paying expenses
when they do become ill.
⚫ Child care programs
assist parents with child
care expenses.
⚫ Cafeteria-style benefits
allow employees to
choose the benefits they
really want. 9- 13
Executive Compensation
Most senior
executives receive
their compensation
in 2 forms:
1. base salary
2. a form of incentive pay
(usually a bonus which
is based on company
performance)
9- 14
Legal Issues in Compensation
9- 15