What is remuneration?

W

The full compensation obtained by an employee is referred to as remuneration. It includes not just the employee’s base salary, but also any bonuses, commission payments, overtime pay, or other financial perks received from their employer. Direct monetary payment or taxable fringe benefits such as personal use of a company car are examples of remuneration.

The compensation strategy also called as remuneration strategy, of a corporation, serves as the foundation for organizing and managing compensation issues across the organization. Compensation strategies differ by industry and even within organizations, based on the nature of the work and the employee’s position in the organization.

Long-term and short-term incentives, as well as monetary and non-monetary compensation, should all be included in remuneration strategies. Bonuses, options, expense accounts, and other forms of compensation might be included in executive salary. These are usually spelled out in a job contract.

Factors influencing the amount of remuneration:

  • The business model of the organization.Some businesses take pleasure in their increased employee compensation packages, which may include bonusesand stock options.
  • The importance of the employee to the organization.This isbecause employees with in-demand abilities are more likely to receive additional benefits.
  • The state of the economy as a whole.Companies go to great lengths to attract the top applicants when jobs are abundant but talent is scarce. This translates to higher pay.
  • The type of job.This is because some jobs are hourly or salaried, while others provide a base salary plus commissions, tips, or bonuses.

About the author

Pieter Borremans

Add Comment

Get in touch