ADM 3337 Chapter Notes - Chapter 1: Life Insurance, Strategic Thinking, Employee Benefits
18 Apr 2016
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Pay be viewed as a measure of justice: men vs. women and their earnings. Various contributing factors to wager determination: human capital, demographic characteristics, job characteristics. Compensation matters in the eyes of stockholders: using stock to pay employees may increase sense of ownership vs. giving too much ownership and diluting stockholder wealth, interest in executive compensation. Pay received is a major source of financial security. Pay is key in determining economic and social well-being. Compensation is a return on employee investments and contributions (education, training) Some employees believe that pay is an entitlement regardless of performance. Culture and country can drastically alter the meaning of compensation. Compensation: all forms of financial returns and tangible services and benefits that employees receive as part of an employment relationship. Relational returns: psychological returns employees believe they receive in the workplace. Total compensation includes pay directly received and benefits. Total rewards: all rewards received by employees, including cash compensation, benefits, and relational returns.
