Chapter

8.6. Employee Compensation and Benefits*

From IntroductionToBusiness OP 8D04gAa

Concepts

1. What internal and external factors determine employee pay?

   "Compensation, which includes both pay and benefits, is closely connected to performance appraisals. Employees who perform better tend to get bigger pay raises. Several factors affect an employee’s pa

2. What are the types of direct compensation and incentive pay?

   "There are two basic types of compensation: direct and indirect. Direct pay is the wage or salary received by the employee; indirect pay consists of various employee benefits and services. Employees a

3. What benefits make up indirect compensation?

   "Indirect pay includes pensions, health insurance, vacation time, and many others. Some forms of indirect pay are required by law: unemployment compensation, worker’s compensation, and Social Security

4. How can employee benefits support company culture and retention?

   "At Starbucks, CEO Howard Schultz understood that the single most important aspect of creating an enduring brand is its people. Schultz wanted to set Starbucks apart from other coffee shops and servic