What is Employee Compensation? 24 Different Types of Compensation with Examples
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In appreciation for their efforts toward the company, employees are given compensation, which can include both monetary and non-monetary awards. It is reimbursed in the form of stipend, salary, and benefits for employees, including paid time off for vacation and sick days, health insurance, maternity leave, travel reimbursement, and retirement benefits, etc..
In addition to a separate 25% increase in holiday pay, upwards of 1,000 Cadbury employees have received a two-year salary agreement worth up to 17.5%. An agreement of two years, which includes incentives and sees employee pay climb above the current inflation rate. A total of 80% of the workers stationed at several Cadbury's plants near Hereford, who are members of the union Unite voted in favor of the deal.
Paytm and Zomato Announce ESOPs Worth INR 944 Cr and Benefits for Top Brass
Directors, Key Management Personnel (KMPs), and KMPs' dependents received payments from Paytm totaling INR. 564 Cr. in place of ESOP expenses.Zomato paid its CEO, CFO, and company secretary wages, ESOP expenses, as well as other employment benefits totaling INR. 380 Cr.This is despite the fact that Zomato recorded a consolidated loss of INR. 250.8 Cr in Q2 FY23, and Paytm's net loss increased to INR. 571 Cr in the same quarter.
In order to retain staff, Microsoft will increase salaries and stock awards. In accordance with a memo from CEO Satya Nadella, he said, "Our talent is in high demand."
The money for pay raises might "nearly double" as a result of the shift. Microsoft intends to "nearly double" its allocation for staff pay hikes and increase the range of stock awards it grants select employees by a minimum of 25% in an attempt to maintain personnel and assist them in adjusting to inflation.
Amazon declared a pay hike for hourly employees in the United States that, according to the company, will raise the average starting compensation for front-line workers in transportation & warehousing to more than $19/hour. The minimum wage set by the corporation for all hourly employees in the United States is still $15 per hour. The boost would result in increased spending of nearly $1 billion over the coming year. By the end of 2021, Amazon had higher than 1.1 million employees working for them in the united states.
According to the company's most recent announcements, Foxconn's Zhengzhou factory in Henan Province, Central China, has introduced new incentive plans for its current employees who have a low percentage of absenteeism as well as appropriate allowance plans to entice its previous workers to return to work.The company would provide a one-time incentive of 500 yuan($69.8) for previous workers who left the Zhengzhou facility between October 1 and November 10 and who are now back at work.
As per Foxconn, returning employees who work for longer than a week would receive a second incentive of 30 yuan for every hour, which would continue for two months starting in December and be given out along with pay.
Types of compensation include:
1. Financial
2. Salaries and Wages
3. Incentives
4. Allowances
5. Claims
6. Gratuity
7. Added Bonuses
8. Perquisites
9. Non -Financial
10. Duties of the Position
11. Acknowledgment of Excellence
12. Development Potential
13. Effective Management
14. Pleasant Working Environment
15. Task Sharing
16. Flexible Working Hours
17. Factors Influencing Compensation
18. State of the Labor Market
19. Laws Regarding Labor
20. Comparable Pay Ranges
21. Cost of Living
22. Collective Bargaining
23. Technology
24. The capacity of the Organization to Pay
Objectives of Compensation includes
Equity
Allocation of labor in a way that is efficient
Get the employee’s' attention
Google wants to reduce its spending on employee benefits. Google used to be known for having a vibrant and exciting working environment. However, it is now shifting its approach to employee benefits. So there may be other steps to tighten the purse strings.Sundar Pichai, the CEO of Google, warned his staff not to mistake enjoyment for gain. A number of other major companies have also been severely impacted by the global economic recession, including this internet giant.
This video is on Employee Compensation and it has the
following sub-topics.
Time Stamps
0:15 Introduction of Compensation
0:56 Compensation Example – Cadbury, Paytm and Zomato
2:29 Compensation Example – Microsoft
5:13 Compensation Example – Amazon, Foxconn
6:28 Introduction to the Types of Compensation
6:34 Financial Compensation
8:31 Non-Financial Compensation
9:00 Factors Influencing Compensation
11:51 Objectives of Compensation
13:26 Compensation Example – Google