| Term | Definition |
|---|
| Nonexempt employee | Employee who receives overtime pay |
| External equity | Payment of employees at rates comparable to those paid for similar jobs in other firms |
| Legally required benefits | Social security, workers' compensation, unemployment compensation, Family and Medical Leave |
| Job Analysis | Systematic process of determining the skills, duties, and knowledge required for performing jobs in an organization |
| Cost-of-living-allowance | An escalator that adjusts wages per a cost-of-living index such as the consumer price index (CPI) |
| Compensable factor | Identifies a job value commonly present throughout a group of jobs |
| Compensation survey | Strives to obtain data regarding what other firms are paying for a specific job or job classes within a given labor market |
| Gainsharing | The sharing with employees of greater-than-expected gains in profits and/or productivity |
| Non-contributory plan | Pension plan in which all the funds for pension benefits are provided by the employer |
| Utilization review | An audit and review of the services and costs billed by health-care providers |
| Benefit | Indirect compensation given to an employee or group of employees as a part of organizational membership |
| Government mandated | Workers’ compensation, unemployment compensation, Social Security |
| Defined benefit plan | Employee is promised a pension amount based on age and service |
| Define contribution plan | Contributions to a pension plan are deposited in an employee’s pension account |
| Vesting | The right of the employees to receive benefits from a pension plan |
| Co-payment | Employee’s payment of a portion of the cost of both insurance premiums and medical care |
| Managed care | Approaches that monitor and reduce medical costs using restrictions and market system alternatives |
| Time-Off Benefits | Holiday pay, vacation pay, sick leave, bereavement |
| Garnishment | A court action in which a portion of an employee’s wage is set aside to pay a debt owed a creditor |
| Job evaluation | The systematic determination of the relative worth of jobs within an organization |
| Variable Pay | Compensation linked to individual, team, and organizational performance |
| Individual Incentive Pay | Piece-rate, sales commissions, safety awards, attendance awards |
| Profits sharing | A system to distribute a portion of the profits of the organization to employees |
| Golden Parachute | A severance benefit that provides protection and security to executives in the event that they lose their jobs or their firms are acquired by other firms |
| Unemployment Compensation | Employers finance this benefit by paying a tax on the first $7,000 of wages to provide employees with up to 26 weeks of pay |
| Severance Pay | A security benefit voluntarily offered by employers to employees who lose their jobs |
| Portability | A pension plan feature that allows employees to move their pension benefits from one employer to another |
| Time Off Benefits | Holiday Pay, Vacation Pay, Leaves of Absences, Bereavement Pay |
| Utilization review | An audit and review of the services and costs billed by health-care providers |
| Exempt employee | Employee does not receive overtime pay |
| Internal equity | Concerned with the relative worth of jobs within the company |
| Managed care systems | HMO’s, PPO’s |
| Compensation survey | Strives to obtain data regarding what other firms are paying for a specific job or job classes within a given labor market |
| Executive compensation | Typically includes base salary of $1 million plus stock options |
Combine with other sets
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