Question

Examine three compensation-related challenges companies face. Be sure to provide your rationale for selecting these compensation challenges as opposed to others.

Answer 1

Compensation related challenges are human resource sanctions that focus on employee compensation and benefit policies. Although compensation and benefits are tangible, there are intangible rewards such as recognition of life, career and development. Together, they are referred to as general rewards. The term "compensation and benefits" refers to discipline as well as personal rewards.

1. Payment Guarantee - A fixed cash reward (in cash) that an employer provides to an employee. The most common form of guaranteed salary is the base salary. Guaranteed payments also include cash allowance (housing allowance, transportation allowance, etc.), differential (differential exchange, leave of absence) and premiums (night shifts, etc.).

2. Variable Wages - A fixed cash reward (cash) given by an employer to an employee based on a decision, result or outcome. The most common forms of variable salary are bonuses and incentives.

3-Benefits - Programs that employers use to supplement employee benefits such as vacation pay, health insurance, car, company and others.