What is variable pay? Variable pay is compensation that is awarded to an employee that has gone above and beyond their regular job requirements to contribute to the organization’s success. The purpose of variable pay is to motivate behavior change. Variable pay is determined both by an employee’s performance and the organization’s performance and is…
What are intangible rewards in the workplace? Intangible rewards refer to non-material awards provided to an employee that do not have inherent financial value. They are used to recognize and show appreciation for an employee’s efforts and performance. Intangible rewards are usually given in response to a particular achievement by an employee. Examples of intangible…
What is a pay group? A pay group is a set of employees grouped according to shared characteristics and paid on the same schedule. Grouping employees in this manner ensures easier processing of the payroll. A pay group enables a company to sort employees based on pay frequency. An employee may only belong to one…
What is front pay? Front pay is compensation awarded to an employee for lost earnings and other benefits due to employment discrimination. The compensation is determined from the time of judgment to reinstatement or in lieu of reinstatement. Compensation in front pay includes: Compensation lost while the employee looked for a new job Compensation for…
What are tangible rewards? Tangible rewards are defined as rewards provided to recognize a job well-done and show appreciation. These can be either cash or non-cash rewards that can be assigned a monetary value. Tangible rewards create psychological empowerment for employees, leading to discretionary behavior, such as improved job performance and morale. For example, an…