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Employee Compensation Checklist


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Employee Compensation Checklist Employee Compensation Checklist is created to help employers in learning structure of options that employee compensation embraces.

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Employee Compensation Includes:

  • Salaries: periodic payments from an employer to an employee, specified in the employment contract. It is usually paid without relation to amount of work done or results obtained. It can be considered as the cost of acquiring human resources to support current business tasks and operations. Salaries are paid to full-time regular staff members;
  • Wages: an objective compensation which is received by workers in exchange for their labor that is explained in specific terms. Each job, or amount of hours worked, is rated and paid separately according to predefined conditions. Wages are paid to freelancers, contactors and part-time workers;
  • Incentive awards: rewarding employees with one-time monetary payments, valuable gifts or holidays, rather than increasing the regular pay. Awards are paid to recognize irregular, but significant achievements, excellent performance and contributions made into certain projects, so employees can feel more satisfied and motivated to be diligent in future;
  • Fringe benefits: a collection of different benefits provided by an employer, including health and dental insurance, education and extension courses reimbursement, childcare, fitness and catering plans, discounts for employees, use of a company owned vehicles and other similar benefits, like corporate phone tariff, compensations for fuel, etc;
  • Pension plan costs: investing into retirement plans for employees is a way that a company may use to help its employees achieve a secure financial future. Pension plan fees depend on local state policies and programs that regulate this kind of relations;
  • Incentive pay: increased payment for certain stressful or irregularly hard conditions that put additional tension upon employee resources and health. This comprises compensations for overtimes, perfect performance, implementation of innovations, and harmful conditions;
  • Payment rates based on training and experience: employees with higher qualifications can pretend to obtain higher payments for jobs they do – experience and skillfulness are valuable resources which are acquired at higher costs (as they bring a higher income);
  • Reasonable accommodations: employees with disabilities and health impairments have right to demand special workplace adjustments and modifications to make working environment equal and fair to them;
  • Travel costs: travel expenses related to business trips or relocations on behalf of a company......

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