What are the 3 types of compensation?
Different types of compensation include:
- Base Pay.
- Overtime Pay.
- Bonuses, Profit Sharing, Merit Pay.
- Stock Options.
- Travel/Meal/Housing Allowance.
- Benefits including: dental, insurance, medical, vacation, leaves, retirement, taxes…
What is compensation and what are the three basic forms?
There are six basic forms of compensation: salary, short-term incentives (STIs or bonuses), long-term incentive plans (LTIPs), benefits, paid expenses, and insurance. Short-term incentives are usually formula-driven, whereas bonuses are awarded after-the-fact and are usually discretionary.
How many types of compensation are there?
Joseph J. Martocchio has classified seven types of monetary or core compensation in the context of practices in the U.S.A. These are as follows – hourly pay, annual salary, cost of living adjustments, seniority pay, merit pay, incentive pay and person-focused pay, pay-for-knowledge and skill-based pay.
What is compensation and its types?
Compensation includes monetary payments like bonuses, profit sharing, overtime pay, recognition rewards and sales commission, etc., as well as nonmonetary perks like a company-paid car, company-paid housing and stock opportunities and so on.
What are the four basic types of compensation?
The Four Major Types of Direct Compensation: Hourly, Salary, Commission, Bonuses. When asking about compensation, most people want to know about direct compensation, particularly base pay and variable pay.
What are the three key components of compensation and benefits?
Components of compensation include the following four items:
- Base pay, either an hourly wage or salary. Base pay is frequently a major decision factor for most employees in deciding to accept the job.
- Wage and salary add-ons. …
- Incentive pay for performance. …
What are the three basic compensation strategies Mcq?
Answer» d. market leader, competitive with market and below market. Report.
What are the two main types of compensation?
There are two different forms of compensation provided to employees; direct and indirect. Direct forms of compensation have a multitude of types or methods, from salaries to bonuses. Indirect compensation is primarily the various types of benefits and long-term incentives.
What are the five types of compensation?
- 5 Different Types of Sales Compensation Plans. Talent & Recruitment. …
- Straight Salary. Straight salary sales compensation plans aren’t very common, but they do have a place in some organizations. …
- Salary plus Commission. …
- Commission Only. …
- Territory Volume.