Employee Compensation and Benefits Quiz

Employee compensation and benefits (C&B) is a sub-discipline of human resources that focuses on employee compensation and benefits policy-making. Total rewards combine tangible and intangible rewards such as recognition, work-life balance, and development. Compensation and benefits include guaranteed pay, variable pay, benefits, equity-based compensation, and intangible benefits. Equity-based compensation refers to using the employer's shares as employee compensation, and intangible benefits include desirable work schedules and access to training programs. Total compensation includes guaranteed pay, variable pay, benefits, and equity compensation. External equity refers to the similarity of the practices of other organizations in the same sector, while internal equity refers to employees' perception of their duties, compensation, and work conditions as compared with those of other employees in similar positions in the same organization. HR organizations in large companies are typically divided into HR business partners (HRBPs), HR centers of excellence, and HR shared services. The most important internal influencers of employee compensation and benefits are the business objectives, labor unions, internal equity, organizational culture, and organizational structure. The most important external influencers are the state of the economy, inflation, unemployment rate, labor law, and the relevant industry habits and trends. Bonus plans are variable pay plans that have three classic objectives: adjusting labor cost to financial results, driving employee performance, and employee retention. Bonus plans are designed based on the concept of Operant Conditioning.