A Complete List of Compensation and Benefits in HR

Compensation and benefits in human resources refer to the financial and non-financial rewards that an organization provides to its employees in exchange for their work.

Many companies rely on compensation consulting to help them create the perfect combination of compensation and benefits. Below is a list of typical compensation and benefits used by organizations.

Base Salary or Wages

Base salary or wages refer to the fixed amount of money that an employee is paid by an employer, typically on a regular basis, such as weekly or monthly. This base amount is the minimum amount an employee will receive for their work, and does not include any forms of additional compensation.

Overtime Pay

Overtime pay is compensation for working more than a certain number of hours in a workweek. Different countries and states have different laws and regulations regarding overtime pay and the number of hours that qualify for overtime.

Bonuses and Commissions

Bonuses are financial rewards given to employees in addition to their regular salary or wages, for meeting targets, good performance, or loyalty.

Meanwhile, commission pay is a form of payment given to employees, usually salespeople, based on their revenue generated for the employer as an incentive to sell more.

Stock Options or Equity

Stock options are a form of compensation that comes in the form of a right to purchase company stock at a fixed price in the future. It incentivizes employees to join or stay with a company. Meanwhile, equity refers to ownership in a company, and employee equity, such as ESOP or ESOP, gives employees a stake in the company's success and can motivate them.

Retirement Benefits (e.g. 401(k) plan, pension plan)

Retirement benefits, such as 401(k) and pension plans, are financial support for employees during retirement. A 401(k) is a savings plan where employees and employers make contributions that can be invested, tax-free, and typically withdrawn at retirement. A pension plan is an employer-funded plan that provides a steady income stream to employees after retirement.

Health Insurance (e.g. medical, dental, vision)

Health insurance is coverage that pays for medical expenses or dental and vision costs. Health insurance can be provided by an employer, purchased individually or obtained through government programs. The level of coverage and out-of-pocket expenses vary.

Life Insurance

Life insurance is a type of insurance that pays out a sum of money to designated beneficiaries upon the death of the policyholder as a form of financial support. Life insurance can be purchased individually or offered by employers, and the cost and death benefit depend on the policyholder's age, health, and lifestyle, as well as the type of policy.

Disability Insurance

Disability insurance provides financial support for those unable to work due to a disability, covering income replacement for injury or illness.

It can be purchased individually or offered as a benefit by employers, with cost and benefit determined by factors such as occupation, health, lifestyle, and the type of policy chosen.

Paid Time Off (e.g. vacation days, sick leave)

Paid time off (PTO) is an employee benefit that provides paid leave for vacation, personal or family reasons, typically provided by employers. It can be used for various reasons and is usually provided as a bank of hours or days that employees can use at their discretion. 

Educational Assistance or Tuition Reimbursement

Educational assistance or tuition reimbursement is a benefit offered by some employers to help their employees pay for college or other types of continuing education. It is usually provided after the employee has completed a certain period of service with the company, and may be subject to certain conditions or limitations.

Employee Assistance Programs (EAP)

Employee assistance program (EAP) is a benefit offered by some employers that provide confidential services and resources, such as counseling, financial advice, legal assistance, and referral services, to help employees deal with personal and professional issues that may affect their well-being and job performance, at no cost to the employee.

Build the Right Compensation and Benefits Package for Your Organization

The exact benefits offered by a company depend on the size and scale of the organization, its industry, and its location. Build a total rewards package that suits your company with the help of FutureSense!

FutureSense offers compensation consulting services that allow you to plan, design, and implement a compensation strategy that attracts talent, retains employees, and achieves your business objectives. 

Learn more about how our services can help future proof your business. Reach out to FutureSense and get a free quote!