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30 Cards in this Set
- Front
- Back
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Total Rewards
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All the tools an employer uses to attract, motivate and retain employees
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Five Components of Total Rewards
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Compensation, Benefits, Professional Development, Recognition Programs, Work/Life Programs
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Compensation
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Cash compensation that employees receive in exchange for the work they perform (wage, salary, commissions, bonuses)
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Fixed Pay
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AKA Base pay, nondiscretionary compensation that does not fluctuate based on performance or results (salary pay/hourly wage)
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Variable Pay
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Compensation that changes directly with performance/results achieved. Ex: Commissions, bonuses, incentives, stock, profit sharing
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Premium Pay
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Compensation tied to nontraditional work schedules, shifts and skills, provided in addition to fixed pay, i.e. weekend/holiday pay, on-call pay
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Pay Philosophy
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(Compensation Philosophy) company's perspective on employee compensation
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Pay Structure
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Allows HR to carry out compensation philosophy fairly, indicates how much value the org. places on a position and why employees are compensated at different rates
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Internal Equity Pay Structure
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Pay is based on where that position is placed in the hierarchy of the organization
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Market Pricing Pay Structure
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Pay is based on market pricing comparing equivalent jobs across the board
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Compensation Analysis
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Determine payroll budget --> Benchmark each job's value --> Create salary ranges and pay grades so employees can progress in his/her job
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Executive Compensation
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To attract and retain the most qualified executive team, a unique package of executive benefits different from that of regular employees.
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Employee Benefits
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Two types: Mandated (employers legally required to provide them) and those an employer may choose to offer. Unemployment and worker's comp are mandated, optional benefits may be retirement plans and health insurance
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Family and Medical Leave Act (FMLA)
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Ensures employees can take the necessary time off to care for themselves and their families. For businesses w/ 50 or more employees, a qualifying employee may take up to 12 weeks unpaid leave while retaining their health insurance benefits.
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Patient Protection and Affordable Care Act (PPACA)
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Certain employers must provide affordable, minimum value health insurance to full time employees and dependents
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Cafeteria Benefit Plan
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Employees select from at least two options of cash or qualified benefit plans
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Flexible Spending Accoutns (FSA)
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Employees may make pre-tax contributions from their earnings for qualified expenses
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Health Reimbursement Account (HRA)
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Employer-funded account that employees may use to pay for certain medical expenses. May be used to pay for that participant's out of pocket medical expenses until insurance kicks in or the funds are depleted
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Health Savings Account
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Medical savings accounts to which contributions may be made on a pre-tax basis (they are not subject to federal income tax upon deposit)
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Employee Retirement Income Security Act (ERISA)
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Provides protection for participants and beneficiaries. Plan administrators are required to meet certain standards of conduct in order to qualify.
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Consolidated Omnibus Budget Reconciliation Act (COBRA)
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Grants employees the right to keep the group health insurance that they would otherwise lose after they quit or lose their job, or reduce their work hours. May work up to 18 months or more.
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Health Insurance Portability and Accountability Act (HIPAA)
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Provides opportunities for people to retain health insurance during qualifying events, protects the confidentiality and security of private healthcare information
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Defined Benefit Plans
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Company-provided pension plans in which an employee's pension payments are defined/calculated according to the employee's length of service w/ the company and their earnings prior to retirement
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Defined Contribution Plan
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Retirement savings plans in which the employer and/or employee contributes on a regular basis, oten pre-tax. The employee accesses his/her account upon retirement
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Profit-Sharing Plan
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Offered in conjunction with a defined contribution plan. Allows company to allocate profit to the employee's retirement account using a predetermined formula/vesting schedule.
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Work-Life Balancing Programs
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Helps employees integrate work and famly life through non-traditional work arrangements, counseling and support, and concierge services.
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Employee Assistance Programs (EAP's)
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Provide independent, confidential and free counseling and support services (for mental health, family life and financial, legal and other issues).
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Recognition Programs
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Reward results or behaviors that affect the business in a notable way, provide feedback immediately and frequently, offer opportunities for peer-to-peer recognition, recognition is public and embedded into the company's values. Improves morale, committment and synergy.
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Professional Development Program
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Acquisition of skills and knowledge, both for personal development and career advancement (training programs, work-related degree programs, etc.)
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Maslow's Hierarchy
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Physical needs --> Safety and Security --> Love and Belonging --> Self-Esteem --> Self-Actualization
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