02. Economic Theories

When an organization values and appreciates team members, it fosters a belief in the company’s overall mission, helps improve staff retention and increases loyalty and engagement. Examples of benefits that make people feel valued and understood in the workplace include stock options, flexible schedules, personal days, child care, gym memberships and product discounts. The benefit of a service…

Some steps to take to enhance or improve compensation and benefits: 1. Conduct a compensation and benefits analysis: Start by analyzing the compensation and benefits programs. It provides comprehensive standards, local rates, and the needs and expectations of the workforce. 2. Benchmark against competitors: Research and gather information about what the competitors offer in terms of compensation…

The types of compensation are as follows: 1. Base salary: This is the fixed amount of money employees receive as regular pay that is determined according to the job responsibilities and qualifications. 2. Bonus: Bonuses are the additional payments given to employees based on individual or collective performance, goals, or achievements that can be discretionary, performance-based, or…

Indirect compensation refers to monetary and non-monetary incentives given to an employee to increase their overall engagement and motivation at work. This type of compensation still has a financial value, but employees don’t receive it in cash form. Here are some of the common forms of indirect compensation. Note that there’s an overlap between what’s considered indirect compensation…

Direct compensation is the financial compensation, or cash, given from the employer to the employee for their services. Base pay Base pay (also known as basic salary or base salary) refers to the fixed financial amount that an organization pays its employees in exchange for the services they perform. This amount is negotiated during the hiring…