Total Package of Compensation

Total Package of Compensation

While it is unlikely for companies to give direct benefits to all employees, the compensations that are offered by the company are paid in monetary terms to administer and service.

Some of the benefits that are made available by the companies are −

  • Health Insurance that may include Medical facilities, dental care, eye care (usually the cost is shared by the company and the employee). Companies sometimes offer Life Insurance or Insurance for any disability.
  • The 401(k) plan Some companies will contribute up to a specified percentage of their total contribution.
  • Options for Stock marketing within the company.
  • Payment for Vacations and/or Sick Pay.
  • Child Care − Some companies even have policies and facilities such as schooling and sports education within their premises.
  • Communication facilities or Automobile Allowances − These facilities are more common for salespeople working within certain industries.
  • Flexible Health Care Spending/Commuter Reimbursement − These come into play where a part of their basic income is kept aside before taxes for Companies to then get repaid according to the usage.

Incentives does not only include the basic salary, the earned commissions and the other various bonuses. Incentives are the rewards offered by a company, which can increase the whole weight associated with the compensation plan. Companies are all associated with a financial component integrated to them.