COMPENSATION DESIGN

Designing compensation programs that drive performance and reward your best talent

Base Pay

Base pay is the foundation of any compensation program. It is the regular salary or hourly wage that an employee receives, regardless of their performance or the company's financial performance. Base pay is typically determined by the employee's job title, experience, and skills.

Variable Pay

Variable pay is designed to reward employees for their performance and to motivate them to achieve high goals. Common types of variable pay include bonuses, commissions, and profit-sharing. Bonuses are typically one-time payments that are awarded based on individual or company performance. Commissions are payments that are based on an employee's sales performance. Profit-sharing is a plan where employees receive a share of the company's profits.

Benefits

Benefits are non-financial rewards that employers offer to their employees. Common types of benefits include health insurance, retirement plans, paid time off, and company cars. Benefits can help to attract and retain employees, and they can also help to improve employee morale and productivity.

Perks

Perquisites are special privileges or benefits that employers offer to their employees. Common types of perquisites include executive parking spaces, club memberships, and personal use of company assets. Perquisites are typically offered to high-level executives or to employees in critical roles.