5 Questions
What is the main purpose of compensation systems?
To provide fair payment for the work done by employees, motivate them, and enhance their job satisfaction
What does direct compensation include?
Wages paid and variable pay such as bonuses, commissions, and stocks
What does indirect compensation include?
Employee benefits and services
What is the difference between short and long-term compensation?
Short-term compensation includes sales bonuses given to employees, while long-term compensation includes stock options that can be shared after a period of time
What is included in variable pay as part of direct compensation?
Bonuses, commissions, and stocks
Test your knowledge of compensation systems in this quiz. Explore the various types of rewards, both cash and non-cash, that employees receive in exchange for their work. Gain insights into the role of HR managers in developing fair and motivating compensation systems.
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