Pre-Assignment

For your pre-assignment, please read the article below and answer the questions.

Compensation and Benefits

Compensation refers to all rewards that individuals receive in return for the work that they do. Direct financial compensation includes pay received in the form of wages, salaries, bonuses, and commissions. Indirect financial compensation (benefits) includes all financial rewards that are not included in direct compensation. Indirect benefits include a wide variety of options.

To remain competitive with companies in the same industry or geographic location, compensation systems must be developed toward performance that reflects key business goals. In addition, the uniqueness of each employee must also be considered to some degree. People have different needs or reasons for working. The companies with highly desirable compensation packages will meet as many of those needs as possible. When people are having difficulty providing food, shelter, and clothing for their families, for example, money may be the most important reward. Yet, some people receive little pay, and still love their work. To a large degree, then, adequate compensation meets some level or standard of living, and beyond that is of varying importance to different employees.