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 is discretionary time off? Discretionary time off (DTO) is a leave policy that allows employees unlimited paid time off each year. This system provides staff with the flexibility to take leave as needed – whether for vacation, appointments, or other personal matters. While DTO does not impose strict limits, it often includes recommended guidelines,…
What is pay compression? Pay compression, also known as salary compression or wage compression, happens when the pay differences between employees with varying levels of experience, skills, or seniority become small. This often occurs when new hires are brought in at salaries close to or even higher than those of long-standing employees, usually due to…
What are extrinsic rewards? Extrinsic rewards are external incentives employees receive as encouragement or compensation for completing a task or achieving certain goals. They are often, but not always, financial in nature. Extrinsic rewards examples Some common examples of extrinsic rewards in the workplace are: Intrinsic vs. extrinsic rewards Intrinsic rewards are internal, psychological rewards…
What is commission pay? Commission pay is a type of variable compensation where employees earn based on their performance, typically tied to the volume or value of sales they generate. This approach is especially common in sales roles, as it encourages higher sales and larger transactions. In most cases, an employee must be paid a…
What is a shift differential? Shift differential is a premium rate offered to employees who work outside of the conventional work schedule, such as night shifts, weekends, or holidays. This additional compensation is not required under the Fair Labor Standards Act (FLSA), however, it is a common practice in businesses that operate around the clock, including…
Leave of absence meaning A leave of absence is a period of time that an employee is authorized to be away from work while maintaining their employment status. They are usually granted for a fixed set of reasons specified by company policy or employment contracts, such as illness and disability, family emergencies, military service, or…
What is compassionate leave? Compassionate leave is a type of absence granted by an employer when an employee experiences a distressing situation in their personal or family life. These circumstances typically include: Compassionate leave policies vary by country and organization but generally, they allow employees to take a few days off work without fear of…
Compensatory leave meaning Compensatory leave is paid time off given to employees in lieu of overtime pay for hours worked beyond their standard work schedule. It is often a desirable alternative for both employers and employees to balance uneven and demanding schedules. Compensatory leave is often referred to as “comp time” or “pay in lieu”…
What is a flexible benefit plan? A flexible benefit plan (FBP), also known as a Section 125 plan or cafeteria plan, is an employee benefits program that allows workers to select from a variety of pre-tax benefit options. Employees can customize their benefits package by choosing the options that best meet their personal needs, such…
What are voluntary benefits? Voluntary benefits are benefits employees opt into and may pay a portion of the cost for. They are best understood in contrast to employment benefits. An employment benefit is part of an employee’s contractual compensation, so it is automatically provided, and the cost is part of an employee’s pay. Employee voluntary…
