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34 terms

HR Games UW - Compensation & Benefits

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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