Benefits And Benefits Of Employee Compensation - 1395 Words

Employee compensation is all forms of pay and rewards which are received by employees for completing their job duties as outlined by their employer. Compensation is classified two ways, direct and indirect compensation. Direct compensation covers wages and salaries, bonuses, commissions and incentives. With indirect compensation, benefits are supplied by employers, and nonfinancial compensation includes recognition, rewarding jobs, and flexible work hours in order to accommodate each person’s own needs. The psychological reward which employees received from their employer is a very important aspect. Employees aspire to have compensation systems that they believe to be fair and while being compensated for their skills. Due to the†¦show more content†¦Fair Labor Standards Act (FLSA) is whether employees are exempt or nonexempt. Nonexempt employees must be paid at a rate of 1.5 times the regular pay rate of that employee for any time that was worked over forty hours i n their work week. Employees that are not covered by the FLSA overtime laws are classified as exempt employees. Most supervisors and managers are considered exempt employees. About 86% of the workforce are covered by FLSA overtime laws and up to 70% of employers may be in violation of these rules as it can be complex at times to determine if the employee is exempt vs nonexempt. (Schreiber and Ariail) â€Å"The FLSA provides an exemption from overtime pay for those working as executive, administrative, professional, and computer employees when they are paid a salary not less than $455 per week.† (Meade) When comparing the benefits for hourly and salary positions, there are many different items to look at and it often depends on each person’s personal situation. One of the main benefits of hourly positions is that the work day is set. The employer sets expectations with the employee on what their work shift will be and at the end time, they can leave. If additiona l work time is needed, the employee has the opportunity to receive extra pay from overtime hours. Due to the extra cost of overtime, many employees do not allow hourly employees to work over their standard 40 hours. This allows the work-life balance for hourly employeesShow MoreRelatedBenefits And Benefits Of Employee Compensation1054 Words   |  5 Pagesfantastic benefits. (Benefits.) One of the many topics that we discussed when we met with Joe Daggar, a senior manager at Paychex, was how the company meets the needs of employees in relation to employee compensation. Paychex has a set system where the company performs anonymous surveys to determine which kind of compensation packages employees are looking for. By using these surveys they constantly change and adapt to the needs of their employees. Investment opportunities was another featureRead MoreBenefits Of Employee Compensation And Benefits1729 Words   |  7 PagesEmployee compensation and benefits provides many different alternatives for employers to reward and retain their employees both near and long term. It is standard set of programs that are designed to reward and motivate employees to perform at exceptional levels as well as retaining these good employees for many years. Employee compensation and benefits has been an ongoing discussion of the Financial Accounting Standards Board (FASB) for quite some time. One key area is not only to provide guidanceRead MoreEmployee Compensation And Benefits Package Essay905 Words   |  4 PagesIntroduction – Employee Compensation and Benefits This paper will outline an employee compensation and benefits package for a new hire for a secretary for the department. First, it will describe the organization I chose for designating a compensation package. 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Further, employee benefits allow companies to utilize other approaches to employee compensation that lack an immediate negative impact on the bottom line. This text explores employee benefits and why they are more important than cash compensation. A Historical Perspective Employee benefits according to Armstrong (2006) are