In the modern business environment, compensation packages have become an important tool for attracting and retaining talented employees. In addition to the base salary, companies also offer various types of additional compensation that motivate employees and provide them with additional benefits and recognition for their work.
Examples of different compensations in companies can include:
One type of additional compensation is bonuses. Bonuses can be paid to employees for achieving individual goals or overall company success. For example, a bonus may be given for exceeding the monthly sales target or for high performance indicators. Bonuses can be paid as one-time payments or on a regular basis, such as quarterly or annually.
Another type of additional compensation is overtime pay. When an employee works beyond the regular working hours, they may receive compensation in the form of additional payment for overtime work. This can be an hourly rate that exceeds the standard wage or an additional allowance for each overtime hour. Overtime pay can be one-time or regular, depending on the company's needs and work conditions.
In addition, companies may offer various types of one-time or recurring compensations that go beyond standard bonuses and overtime pay. These can include rewards for contributions to company development or high performance, additional days off, or paid vacations. Such compensations can take various forms, such as gift certificates, trips, or increased professional development opportunities.
These are just a few examples of additional compensations that can be offered in companies. The specific compensation package will depend on the company's strategy and capabilities, as well as the needs and expectations of the employees.
Creating types of compensations in the system:
To create types of compensations in the system, navigate to the settings, select "PeopleHr," then choose "Compensations" and go to the ''Compensation types" tab. There, you will find the "Add" button, which allows you to create new types of compensations specifically used in your company.
Types of additional compensation:
There are two types of additional compensation available in the system: once-off and reoccurring. Once-off compensation is paid to employees only once and is usually associated with a specific event or reward. For example, it could be a bonus for exceptional achievements, a project completion bonus, or a reward for referring a new client.
Reoccurring compensation involves regular payments to employees over a certain period or on a specific basis. This can include performance-based bonuses, monthly incentives, or daily meal allowances.
Different periodicities for calculating additional compensation:
The system offers various periodicities for calculating additional compensation: daily, monthly, quarterly, half yearly, and yearly. Each of these options can be used for calculating additional compensation in the employee's profile under the "Work" section. For example, the daily periodicity is beneficial for companies that provide daily meal allowances or other daily expenses. Choosing the appropriate periodicity allows you to tailor the calculation of compensation to the needs and expenses of the company.
In conclusion, compensation packages play a crucial role in attracting, motivating, and retaining talented employees in today's business environment. By offering a diverse range of compensation options, companies can effectively reward employees for their contributions, provide additional benefits, and create a positive and competitive work culture.