AIHR Boot Camps are intensive HR training programs designed to rapidly upskill small cohorts, blending self-paced, specialized content with instructor-led, practical sessions, all guided by a program manager to ensure progress and impact.
Learn moreWhat are on target earnings (OTE)? On target earnings (OTE) refer to a compensation package used to incentivize performance and remunerate sales representatives, financial advisors, and senior executives. OTE represents the total projected compensation for a role, including a base salary component (a fixed amount paid to the employee regardless of performance) and a commission…
Basic salary meaning Basic salary, or base pay, is the fixed amount employees receive before any additional payments or deductions are made. This amount doesn’t include benefits, bonuses, commissions, or other types of compensation. For example, an employee earns a basic salary of $80,000 per year but receives an average of $12,000 in bonuses. The…
What is job benchmarking? Job benchmarking involves comparing specific positions in an organization with similar roles (i.e., benchmark jobs) in the industry. This data-driven approach analyzes a role’s qualifications, skills, responsibilities, compensation and benefits, and more. HR professionals use job benchmarking as a strategic tool to compare existing positions with other benchmark jobs. This allows…
What is wage drift? Wage drift refers to the difference between the base wages agreed upon in a collective bargaining agreement (or any standardized wage structure) and the actual earnings of employees. It typically occurs when an employee receives extra pay from overtime pay, bonuses, shift differentials, or other forms of compensation beyond their base…
What is employee benefits administration? Employee benefits administration involves administrators managing and overseeing the employee benefits offered to employees to ensure organizations remain legally compliant. This area focuses on offering fair and effective benefits that support employees’ wellbeing and productivity. Administrators typically design benefits packages that align with both employee needs and company objectives. They…
What is leave encashment? Leave encashment involves converting earned and unused employee leave benefits to monetary payments. Instead of using their paid time off (PTO) during a specified period or allowing it to roll over to the next eligible period, employees can let these funds accrue and then cash them out later. Organizations can provide…
What is emotional compensation? Emotional compensation, also known as emotional salary, refers to the non-monetary incentives and benefits that positively impact employees’ wellbeing and satisfaction in the workplace. It includes factors employees value, like recognition, autonomy, belonging, personal growth, and meaningful work. In addition to base pay, many organizations implement various emotional compensation initiatives, such…
What are intrinsic rewards? Intrinsic rewards are internal drivers, like personal satisfaction or a sense of purpose, that come from within rather than from external incentives like raises or bonuses. These rewards are highly personal, as they’re often connected to feelings of pride, a sense of purpose, and fulfillment in one’s work. Employees who experience…
What is time and a half? Time and a half is the overtime pay employees receive for the extra hours they work in a standard workweek, which is typically 40 hours. This additional pay is the result of multiplying an employee’s hourly pay rate by 1.5 for every extra hour worked. How does time and…
What is a salary review? A salary review is a process where an organization evaluates and potentially adjusts an employee’s salary based on various factors. This process is typically conducted annually or at regular intervals, though it can also occur after a significant event, such as a promotion or a shift in responsibilities. Maintaining a…
