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Course Project Week 7

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Submitted By ctuggle
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Course Project Week 7

By

Christina Johnson and Kenna Grace and Tonnet Slan

Presented to

Dr. Glenn Palmer
Compensation and Benefits

|Bank of America: |April 20, 2014 |

What is Compensation?

“Compensation represents both the intrinsic and extrinsic rewards employees receive for performing their jobs.” Martocchio, J.J. (2013) A Human Resource Management Approach. Compensation as most know is the hourly or annually paid. Compensation consist more of just hourly or annually pay. Organizations create monetary compensation process to reward their employees for their job performance. Monetary compensation is the core of compensation. A nonmonetary reward includes benefits such as medical insurance, paid time off and other services.

Employees receive a base pay for performing their jobs. Base pay is recurring based on the company pay schedule. Companies distribute base pay to their employees in one of two forms: hourly pay or as salary. Employees earn hourly pay for every hour worked and salaries regardless of the number of hours worked. Understanding compensation’s goal in an organization takes understanding the role of HR and how compensation function fits into HR.

Compensation Philosophy

A compensation philosophy is a formal statement providing information on the company’s position about employee compensation. Compensation philosophies are usually created by the human resources department with feedback from executives. “The philosophy is based on a number of factors such as the company’s financial position, the size of the company, the industry, business objectives, salary survey information, and the level of difficulty in finding qualified talent based on the economy, as well as the unique circumstances of the business.” Maciekowich, M.

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