Benefits & Compensation
An employees’ compensation is comprised of more than just their primary rate of pay (hourly wage rate or annual salary). In fact, there are typically many other incentives and benefits provided to employees and all of these variables together make up what we call “Total Compensation”.
Total compensation is comprised of not only an employee base wage but also considers other variables that are often what are considered indirect financial payments, given to employees to supplement their wages. Total compensation can include any (or all) of the following:
- Bonus, performance or incentive pay
- Paid leave
- Personal/float days
- Sick leave
- Other leave (e.g., bereavement, etc.)
- Supplementary top-up payments during leave
- Professional development opportunities
- Paid parking
- Equipment (e.g., laptop, cell phone, etc.)
- Subsidized childcare/eldercare benefits
- Subsidized employee transportation
- Statutory/Paid holidays
- Group health benefits
- Prescription drugs
- Extended Health
- Dental coverage
- Short-term & Long-term disability plans
- Travel insurance
- Vision care benefits
- Life insurance, AD&D, etc.
- Employee Assistance Programs [EAP]
There are others of course, but this is an example of how many other “indirect” financial benefits or payments can be considered when determining an employees’ total compensation.
This section is designed to provide tools and information to assist agencies in working through benefits and compensation related policies and practices.