Embedded Files
Additional pay: Any extra money an employee gets on top of their regular base pay.
Base pay: The fixed amount of money an employee is paid, not including any extra pay, benefits, or retirement plans.
Benchmark job: A job that is commonly found and used for comparing pay rates in the market.
Benefits: Non-pay perks that employers give to their employees, like health insurance, dental insurance, and life insurance. Some benefits are required by law, such as worker's compensation and unemployment insurance, while others are optional.
Classification group: A category of positions that share similar duties, responsibilities, qualifications, and fields of work.
Comparative-ratio (compa-ratio): A comparison of an employee's pay to the midpoint of their pay range. It’s calculated as Actual Pay Rate ÷ Position Pay Range Midpoint.
Compensation philosophy: A document that explains a company's approach to employee pay, rewards, and benefits.
Exemption status: Whether a job is eligible for overtime pay according to the Fair Labor Standards Act.
Fair Labor Standards Act (FLSA): A U.S. law that sets rules for minimum wage, overtime pay, and child labor.
Internal equity: The practice of ensuring employees with similar jobs within an organization are paid fairly compared to one another.
Job classification: Grouping jobs into categories based on similar skills, tasks, and other factors to determine the relative importance of each job.
Job description: A document that details the tasks, duties, and responsibilities of a job, including the qualifications and experience needed.
Job factor: The specific elements or criteria used to evaluate and classify a job, such as skills, responsibilities, and working conditions.
Job opening: An announcement that there is a vacancy in a company that needs to be filled.
Job title: The name or designation given to a specific job.
Market-based pay: A method of setting pay levels based on what other companies with similar jobs are paying in the same industry or region.
Market study: The process of comparing job pay rates to what other companies are paying for similar jobs.
Organizational chart: A visual representation of a company's structure, showing how jobs and departments are organized and who reports to whom.
Pay range: The range of pay rates from the minimum to the maximum that an employee can earn in a specific job or position.
Pay range recommendation: A suggested pay range for a job based on factors like market data and internal pay practices.
Perks: Extra benefits given to employees beyond their regular pay, benefits, and retirement plans.
Range maximum: The highest pay rate in a pay range.
Range midpoint: The middle point of a pay range, often used as a benchmark for setting pay levels.
Range minimum: The lowest pay rate in a pay range.
Range penetration: A measure of where an employee's pay falls within the pay range, calculated as Actual Pay Rate ÷ Range Maximum.
Range spread: The difference between the minimum and maximum pay rates in a pay range, expressed as a percentage of the minimum pay rate.
Reclassification: Changing an existing job to a different category based on significant changes in duties or responsibilities.
Retirement plan: A savings plan that allows employees to save money for their retirement, often with contributions from the employer.
Total compensation package: The full value of an employee's pay package, including base pay, additional pay, benefits, and retirement contributions.
Report abuse