Employee Compensation Flashcards

Employee Compensation Flashcards
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Pay Equity
Also known as internal equity, this exists when those within an organization are compensated relative to their work.
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Compensation Equity
This is the employee's perception of compensation received in exchange for work.
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Pay-for-performance
This type of compensation occurs when an employee receives a base salary, but may also receive additional pay for performance.
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Commission
This is a form of compensation that is given to an employee when a product or service is sold.
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Non-financial Compensation
This type of payment to employees doesn't have any monetary value, but it brings about employee satisfaction in the form of emotional or psychological benefits.
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Indirect Compensation
This is compensation in the form of benefits or perks, not direct compensation.
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Stock Options
This is a benefit given to employees so that they have the right to buy and sell shares of the company.
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Bonuses
This is compensation eared above normal pay for outstanding performance.
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Incentive
This is a reward for performance.
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Wage
This is an hourly dollar amount paid to employees for the hours worked known as 'non-exempt.'
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Salary
This is a set amount of money that is paid to employees per pay period and known as 'exempt.'
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Direct Compensation
This is money payment to an employee for services performed.
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25 cards in set

Flashcard Content Overview

This flashcard set covers employee compensation. The review provides details on the types of employee compensation, such as direct and indirect, including examples such as the differences among salaries, wages, incentives, bonuses, and stock options. You will also find out more about non-financial compensation, as well as common compensation systems and equity. Examples of equity include compensation, pay, external, and employee. Learn more about mandatory and voluntary benefits, incentive compensation and organizational plans, retirement systems, and executive compensation.

Front
Back
Direct Compensation
This is money payment to an employee for services performed.
Salary
This is a set amount of money that is paid to employees per pay period and known as 'exempt.'
Wage
This is an hourly dollar amount paid to employees for the hours worked known as 'non-exempt.'
Incentive
This is a reward for performance.
Bonuses
This is compensation eared above normal pay for outstanding performance.
Stock Options
This is a benefit given to employees so that they have the right to buy and sell shares of the company.
Indirect Compensation
This is compensation in the form of benefits or perks, not direct compensation.
Non-financial Compensation
This type of payment to employees doesn't have any monetary value, but it brings about employee satisfaction in the form of emotional or psychological benefits.
Commission
This is a form of compensation that is given to an employee when a product or service is sold.
Pay-for-performance
This type of compensation occurs when an employee receives a base salary, but may also receive additional pay for performance.
Compensation Equity
This is the employee's perception of compensation received in exchange for work.
Pay Equity
Also known as internal equity, this exists when those within an organization are compensated relative to their work.
External Equity
This is the perception that the compensation received within an organization is comparable to those outside the organization.
Employee Equity
This exists when the unique abilities of each employee are taken into consideration when providing compensation.
Mandatory Benefits
These include government mandated employee benefits such as Social Security, unemployment insurance, family and medical leave, COBRA, and workers' compensation.
Voluntary Benefits
These include benefits that are not required by law and include sick leave, vacation time, and retirement plans.
Defined Benefit Plan
This type of retirement gives an employee a set amount of compensation.
Defined Contribution Plan
This type of retirement provides compensation based on defined employer contributions.
Merit Pay
This compensation occurs when a raise is given based on performance.
Piecework Rate
This compensation is based each unit of production.
Skills-Based Pay
This type of compensation is based on unique skills and expertise.
Stock Option Incentive
This is a type of incentive that gives an employee the right to purchase shares of the company at a set price in the future.
Profit-sharing Plan
This is an incentive that provides additional rewards to employees when the company does well.
Gain Sharing
This incentive program rewards employees a specific amount for participating in management and helping to increase efficiencies.
Managerial Power Theory
This argues that executives are paid more because both parties do not have equal bargaining power.

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