‘Total remuneration’ is the total amount of money that an employee receives in exchange for their work. It includes both financial and non-financial compensation.
Financial compensation includes:
Base salary: This is the employee’s regular pay, usually paid on a monthly or bi-weekly basis.
Bonuses: These are additional payments that are awarded to employees based on their performance or achievement of certain goals.
Commissions: These are payments that are made to employees based on the amount of sales they generate.
Overtime pay: This is pay that is earned for working more than the standard number of hours per week.
Pension plans: These are retirement savings plans that are funded by the employer and the employee.
Health insurance: This is insurance that covers the employee’s medical expenses.
Life insurance: This is insurance that pays a death benefit to the employee’s beneficiaries.
Non-financial compensation includes:
Vacation days: This is the number of days that the employee is entitled to take off from work each year.
Sick days: This is the number of days that the employee is entitled to take off from work due to illness each year.
Paid time off: This is the number of days that the employee is entitled to take off from work for personal reasons each year.
Tuition reimbursement: This is a benefit that allows employees to have their tuition paid for by their employer.
On-site childcare: This is a benefit that allows employees to have their children cared for on-site at their workplace.
Total remuneration is an important factor in employee satisfaction. Employees who are compensated fairly are more likely to be happy with their jobs and to be productive.
Here are some tips for employers to improve total remuneration:
Pay employees a fair wage: Employees should be paid a wage that is commensurate with their skills and experience.
Offer competitive benefits: Benefits such as health insurance, life insurance, and retirement savings plans are important to many employees.
Provide opportunities for advancement: Employees should have the opportunity to advance their careers within the company.
Create a positive work environment: Employees should feel valued and respected at work.
By following these tips, employers can attract and retain top talent.