About This Chapter
PHRi Certification: Employee Compensation & Benefits- Chapter Summary
The lessons in this chapter will help you gain a working knowledge of the different ways employees are compensated and the types of benefits they can receive. This will be important information for you to know in order to pass the PHRi Certification exam. You will have the chance to go over the following topics:
- Types of compensation systems
- Payroll tax
- Types of payroll systems
- Salary surveys
- Incentive compensation plans
- Time off and leave of absence
- Retirement plans
- Insurance benefits
- The role HR has in benefit and provider contracts
After reviewing our lessons, you can assess your understanding with the lesson quizzes. These quizzes are multiple-choice and will give you immediate feedback on your comprehension of the material. Having this immediate feedback is beneficial because you will quickly identify what your weak areas are and what you need to review further.
1. Types of Employee Classification
We'll discuss four main types of employees: full-time, part-time, on-call and intern. We'll also define 'independent contractor' and discuss the difference between independent contractors and employees.
2. Probationary Period of Employment: Policy & Termination
This lesson discusses two types of probationary periods of employment. It also explains how a probationary period policy can relate to termination, as well as how probationary periods can be beneficial to both the employee and employer.
3. Understanding Employee Compensation
Compensation is pay for services during the course of employment. This can be direct (or monetary) compensation and indirect (or non-monetary) compensation in the form of benefits provided to the employee.
4. Common Compensation Systems: Salary, Hourly, Contractor, Pay-For-Performance
One of the core functions of human resource management is the development of a compensation system. In this lesson, you'll learn about the different methods organizations use to compensate their employees. A short quiz follows.
5. What is Payroll Tax? - Definition & Example
This lesson will define the payroll tax and explore the various types of payroll taxes. Also, an example that looks at payroll taxes from the viewpoint of the employee will be provided.
6. Compensation & Benefits: Laws & Regulations
Compensation and benefits are two of the hottest topics in the job market, but do you know what they are? In this lesson, you'll learn what compensation and benefits are and explore laws that affect them both.
7. Using Payroll Processes & Systems
Payroll processing is a task completed by Finance and Human Resources departments. This lesson reviews the systems and processes used to complete payroll.
8. How HR Uses Salary Surveys
Determining the compensation for employees is an important function of the Human Resources department. A tool they use to do this is called a Salary Survey. This lesson will discuss what a salary survey is, how to use it, and why it's important to compensate employees fairly.
9. Incentive Compensation Plans: Merit Pay, Piece Rates, Commissions, Bonuses & Skills-Based
An important role of human resource management is to develop a compensation system to encourage productivity. In this lesson, you'll learn about merit pay, piece rate pay, commissions, bonuses and skills-based pay and how they help achieve this goal.
10. Organizational Incentive Programs: Profit Sharing, Gain Sharing, and Employee Stock Ownership
One way to tie a company's success to employee success is to utilize incentive programs where employees profit when the company does. In this lesson, you'll learn about profit sharing, gain sharing and employee stock ownership.
11. Monitoring Time Off Allowances & Leave of Absence
The majority of companies have time off as an employee benefit. All companies need to manage leave of absences. This lesson details how to establish a policy for time off, and reviews ways to track both time off and leaves of absence.
12. Retirement Compensation Systems: 401(k) and Pensions
One of the most valuable benefits an employer may offer to employees are employer-sponsored retirement plans. In this lesson, you'll learn about two common retirement benefits: 401(k) plans and traditional pensions. A short quiz follows.
13. Insurance & Flexible Benefits for Employees
Employee benefits, such as insurance and flexible spending accounts, offer a valuable incentive for employees to join and stay with a company. In this lesson, we'll explore a few common types of benefits and how they work.
14. Role of HR in Employee Support Programs
This lesson explores the role of human resources in employee support programs, such as tuition reimbursement, health and wellness programs, and employee assistance programs.
15. HR's Role in Benefit Service & Product Provider Contracts
This lesson examines the role and responsibility of human resources to coordinate service and product provider contracts to offer employee benefits. The lesson explains the importance of product provider contract agreements to the organization.
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Other chapters within the Professional in Human Resources - International (PHRi): Exam Prep & Study Guide course
- PHRi Certification: Role of the HR Department
- PHRi Certification: HR Administration
- PHRi Certification: Time Management
- PHRi Certification: Understanding Change Management
- PHRi Certification: Policies & Procedures
- PHRi Certification: Recruitment & Selection
- PHRi Certification: Employee Relations & Communication
- PHRi Certification: Employee Training & Development
- PHRi Certification: Workplace Health, Safety & Security
- Professional in Human Resources - International (PHRi) Flashcards