Remuneration is the compensation that an employee receives. It does not just include base salary but also commission payments, bonuses, or overtime pay that they may receive from their employer!
A job’s perks may or may not be a component of employee remuneration. An on-site gym and generous vacation plan are examples, but they do not provide money in an individual’s pocket like their paychecks would. Remuneration could include direct payment for work done as well as tax-free fringe benefits such as company cars that can also double up as personal vehicles if you’re going home during your lunch break!
The term remuneration means total compensation.
At the directorial level, remuneration can include options, bonuses, and other compensation. Generally, they are detailed in an employment contract to keep things fair for everyone involved, even though only one party often reads them!
The remuneration amount and its components depend on various factors, including:
- The employee’s value to the company. Employees with the latest skills are likely to get more benefits and perks.
- The job type. Some are hourly or salaried positions, while others give base pay plus commissions, tips, or bonuses.
- The company’s business model. The business model of a company can have an outsized impact on employee remuneration. Some businesses offer bonuses, stock options, and 401(k) plan matching contributions to attract top talent, while others find these perks unsustainable in tough economic times.
- The general state of the economy. When jobs are plenty, and talent is , compshortanies pull out all the stops to attract a top performer – that means better remuneration!
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