Employee Compensation
{"Image DocumentName": "Employee Compensation", "Image ImageDescription": "Direct or Indirect compensation is given based on: Increments of time. Hourly (Non-exempt) Salaried (Exempt) Performance. Piecework. Commission. Page 302. There are basically two ways to make direct financial payments to employees: on increments of time and on performance. Time-based pay is still most popular: Blue-collar workers get hourly or daily wages, for instance, and others, like managers or Web designers, tend to be salaried and paid by the week, month, or year. The second option is to pay for performance. Piecework is an example; it ties compensation to the amount of production (or number of pieces ) the worker produces, and is popular as an incentive plan. For instance, you divide a worker\u2019s hourly wage by the standard number of units he or she is to produce in one hour. Then for each unit produced over and above this standard, pay the worker an incentive. Sales commissions are another example of performance-based (in this case, sales-based) compensation. In this chapter, we explain how to formulate plans for paying employees a time-based wage or salary; subsequent. chapters cover performance-based financial incentives and bonuses, and employee benefits. Several basic factors influence the design of any pay plan: legal, union, company.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}