BU354 Chapter Notes - Chapter 10: Kpmg, Pension, Canada Pension Plan
Document Summary
To many, compensation means pay, and anything above that is considered a fringe benefit. However, employers are now making benefits a part of the total compensation package, and they"re being used to attract and retain employees. Direct compensation: pay is considered this because it is based on critical job factors or performance. Indirect compensation: usually extended as a condition of employment, not directly related to employee performance, ie. benefits and services. Include: insurance, time off, financial and social services like a health plan. Benefits have become a very significant part of a company"s compensation system. Benefit policies can significantly impact attracting and retaining employees; can make a big difference in terms of loyalty. Governments rely on the support of employers to solve social problems and provide security for interdependent wage earners. Social services give employees financial security against illness, disability, and retirement: these benefits are no longer fringe, they occupy a large part of payroll.
