| A | B |
|---|
| compensation | the pay and other benefits receive in exchange for their labour |
| wage | pay based on an hourly rate |
| salary | pay based on a time frame, such as weekly or monthly |
| compensation plan | a system of policies and procedures for calculating the wages and salaries in an organization |
| time plan | pays a certain amount for a specified period of time worked |
| commission plan | pays employees a percentage of the volume of sales for which they are responsible |
| piece-rate plan | pays the employee a fixed rate for each unit produced |
| combination plan | a pay plan that provides each employee a small wage or salary and adds incentive pay based on performance |
| bonus | money paid at the end of a specific but long period of time for performance that exceeds the expected standard for that period |
| minimum wage law | it is illegal for employers to pay less than an identified wage to any employee |
| employee benefits | all forms of compensation and services that a company provides to employees in addition to salaries and wages |
| pension plan | a company-sponsored retirement plan that makes regular payments to employees after retirement |
| tax-deferred | meaning when a contribution is made before taxes are calculated on the employee's income |
| 401k plan | a company-sponsored retirement plan in which employees may choose to have a percentage of their pay contributed to one of several alternative investment plans selected by the employer |
| flex-time | lets employees choose their own work hours within specified limits |
| job sharing | allows two people to share one full-time job |
| profit-sharing plan | which pays employees a small percentage of the company's profits at the end of the year |
| cafeteria plan | a program in which employees can select the benefits that meet their personal needs |
| outsourcing | hiring an outside firm to perform specialised tasks |
| formal training | carefully planned instruction with a specific curriculum and instructor |
| informal training | unstructured and unplanned instruction developed for specific situations or individuals |
