Monetised rewards: These are financial rewards that are paid by organisations to compensate employees for their efforts. These include base pay, wages, incentives (bonus plan, commissions, profit sharing plans, stock options, employee stock ownership plans).
Perquisites (benefits): These are the extra or additional benefits that are paid by organisations to employees which go beyond the normal or agreed compensation.
These are self-granted rewards or internally experienced payoffs. In otherworld’s, it is an internal feeling of reward that employees derived from performing their jobs.
Approaches to Determining Compensation
There are many ways to ascertain how compensation can be paid. Human resource scholar, Okwudili (2016) accentuates compensation packages can be ascertained through the following ways:
Seniority-based pay: This is as a result of the employees rank or position in the workplace. The higher the position or rank of a worker, the higher will be their compensation packages.
Job status-based pay: Here, job evaluation is used as a basis to determining how compensation can be awarded.
Skill or competence-based pay: The skill, knowledge, experience and other significance features that individuals bring to bear in the performance of jobs is also a major consideration in the way some organisations approach compensation issues.
Performance-based pay: Compensation is paid to an employee as a result of his/her effort in the work he/she was assigned to do or with a team or group members.