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T REVISION DATE: I. 1 of 14 II-51: SALARY ADMINISTRATION: PROFESSIONAL EXEMPT CONTRACTUAL, PROFESSIONAL EXEMPT NON-CONTRACTUAL AND SUPPORT NON-EXEMPT I-10: ALL PERSONNEL EXCEPT INSTRUCTIONAL PERSONNEL: INTELLECTUAL PROPERTY OF MIAMI DADE COLLEGE BASED ON POLICY: LAST REVIEW DATE: PAGE December 8, 2014, June 9, 2016, May 18, 2017 December 8, 2014, June 9, 2016, May 18, 2017 PURPOSE To provide all full-time and part-time personnel in Professional Exempt Contractual (PEC), Professional Exem.
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1st FAQ
Compensation refers to any payment given by an employer to an employee during their period of employment. In return, the employee will provide their time, labor, and skills. This compensation can be in the form of a salary, wage, benefits, bonuses, paid leave, pension funds, and stock options, and more.
Compensation strategies are plans that describe how a company determines employee benefits and pay. These plans include information on the company's goals for providing compensation and remuneration ranges for roles within the company. It also outlines how the company evaluates employees when determining compensation.
That can include base pay and other forms of compensation, such as commissions, bonuses, and stock options. You can also add in benefits, including sick leave, paid vacations and holidays.
Results from HR's market research will directly inform the salary range for jobs within an organization. Market leaders will pay toward the high end of the range, companies that match will follow the range, and those that lag will compensate near the low end.
Three major compensation types: direct, indirect, and non-monetary compensation. Assess budgets, priorities, goals, and employee locations before determining the right compensation strategy.
These methods of compensation are a direct exchange of pay for work performed and include the four primary compensation types, hourly pay, salary, commissions, and bonuses.
Meeting the Market In this strategy, employees are paid fairly and expected to perform well. As the most common compensation strategy, meeting the market ensures that your pay and costs match the competition. In strong financial environments, you can share bonuses and short-term incentives with employees.
In terms of compensation strategy, it's best practice to tie any bonuses to clear, pre-agreed targets. This allows employees to calculate the total compensation available to them. They can then make an informed decision if another opportunity comes knocking.
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