This section covers the essentials of total compensation, from defining your compensation philosophy to ensuring legislative compliance. It includes strategies for determining competitive pay, using salary surveys, and implementing pay increases. The section also explores indirect financial compensation, such as paid time off, benefits packages, and employee assistance programs, while providing guidance on communicating wage and benefits information effectively to staff.
Total Compensation is the collective compensation earned by employees from their employer, in exchange for their work. This includes both direct and indirect compensation. Total Compensation is a critical consideration for employers because it will influence their ability to attract, retain, and mot...
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There are specific laws and regulations that employers must comply with when it comes to compensating employees. Staying on top of regulations is key to achieving compliance. Employers should regularly review the laws and regulations below to ensure they are up-to-date on changes.Canada Revenue Agen...
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Once you have defined your organization's compensation philosophy it is time to decide what to pay your employees for their work. To create a consistent and fair approach, employers can take the following steps: Conduct job analyses Create accurate job descriptions Perform job evaluations Review...
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Benchmarked salary ranges help organizations to ensure they are paying their employees fairly and appropriately. It is important that nonprofits have a rationale for why they pay their employees at a certain rate. Salary surveys are a means to collect information about employee compensation (salary ...
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When determining what to pay, the first consideration is the organization’s compensation philosophy and where the position fits within the organization, as determined by a job evaluation.Employers need to consider the following scenarios when deciding what to pay employees: New hires Existing em...
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Effective communication about compensation is key to ensuring employees are aware of the value of their total compensation. A compensation communication strategy should be created in alignment with the organization’s HR strategy and be supported by senior management.Aside from knowing their own sa...
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Indirect financial compensation refers to optional, non-wage compensation provided to employees in addition to their normal wages or salaries. These benefits may include group insurance (health, dental, vision, life, etc.), disability income protection, retirement benefits, childcare subsidies, tuit...
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Fully-InsuredSelf-InsuredEmployers pay a fixed premium to the insurance carrier and the insurer covers the claims.Employers pay for claims and fees out of organizational revenue, acting as their own insurers.Fully-insured plans are typically more expensive and rigid because they prevent organization...
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Extended health insuranceEven in Canada, where Government plans provide approximately 70% of all healthcare expenses, the remaining gap is still a major concern for employees and employers. Private healthcare plans are restricted by legislation to costs not fully covered by government programs.Organ...
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An Employee Assistance Plan (EAP) is a confidential short-term counseling and referral service for employees who may be experiencing work-life changes or issues. The support and services offered by EAPs are for both the employee and their family and include the following:Psychological counseling for...
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Supplemental Unemployment Benefit (SUB) plans supplement Employment Insurance (EI) benefits during a period of unemployment due to temporary stoppage of work, training, illness, injury, or quarantine. The employer’s periodic payments (as per the employer’s payroll schedule) increase the employee...
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Supplemental Unemployment Benefit (SUB) plans for maternity, parental (including adoption), or caregiving benefits (including compassionate care, family caregiver benefit for children, and family caregiver benefit for adults) do not have to be registered with Service Canada.The top-up amounts are no...
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Another key feature of an employer’s total compensation package is the amount of paid time off that employees are entitled to. Providing appropriate levels of paid time off is important to support employee well-being, work-life balance, morale, and job satisfaction.Below are some considerations to...
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An employer-sponsored retirement plan provides employees with peace of mind that they will have an income when they are no longer working.Plans can be set up in various ways. Some factors to consider include:Will the plan require both employer and employee contributions?Will the plan be open to all ...
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