Unlocking Employee Value: The 3 Types of Compensation

Employees are the backbone of any organization. Therefore, having employees who are satisfied with their compensation is a must for the organization's overall success. Workers who are satisfied with their pay generally have a greater motivation to perform well in their jobs.

As a compensation and benefits professional, identifying the types of compensation is a building block to discovering what may work for your institution, as well as being familiar with your options in creating a commendable and competitive compensation package.

1. Direct Compensation is the basic monetary payment an individual earns for their work. This may be in the form of a fixed salary, hourly pay, or commission-based pay, depending on the agreement with the employer.
2. Indirect Compensation counts the financial remuneration an employee receives that goes beyond their basic salary. This may include Health Maintenance Organization (HMO) coverage, paid time off (PTO), or any wellness programs.
3. Non-monetary Compensation, as the name implies, are the rewards that do not directly equate to money but can still contribute to overall productivity and feelings of work satisfaction. This may include good company culture, flexible work arrangements, or employee recognition programs.

Learning about these concepts is just the beginning. It's all about knowing how to mix and match according to the needs of the employees.

Learn more about how to create the perfect compensation package! Join the upcoming Certified Compensation and Benefits Professional (CCBP) - Cohort 25 on July 19-20, 2024! Limited participants per session.

??Learn More: www.ihri.ph/ccbp

??Register: https://www.ihri.ph/ccbpregister

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