The remuneration is the cancellation of payment or remuneration that a person obtains in exchange for rendering their services at a specific time and place. Similarly, it is known as pay, salary or salary, that comes from a payroll that is offered to an employee by an employer to perform a job and occupy a position within your company.
Despite this, it may be possible to relate this concept within some benefits that offer certain banking products or in collaborations and commercial agreements, this means that in general the remuneration refers to all types of payments that a person obtains who provides their experiences, assets or skills.
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In this article you will find:
Remuneration objective
Despite the different senses of remuneration that benefit the worker, some representative objectives can be defined, such as those that will be mentioned below:
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Attraction of qualified personnel
With a corresponding system, stimulates the interest of personnel outside the company, which is favorable for the company to be able to position itself competitively in the market.
Keep collaborators updated and incentivize performance
Employees appreciate the relationship between what they contribute to the company and how it pays them. If the incentive convinces the worker, it will be loyal to the organization, since encouraging behavior and compensating for it can be achieve business goals.
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Equitable remuneration
Each employee must receive a remuneration depending on the level o value of the position that he holds within the company, respecting the relationship that exists between the position he occupies and his compensation. The company has a duty to maintain equity on the part of the worker in relation to his salary.
Provide equality
It is directly related to equity, which should align with compensation: equal task, equal remuneration. Internally, equality represents the link between the value of the position and its remuneration. Externally, the company makes an equivalence to the payment of similar remunerations to other companies, which in turn could be higher or lower than the market.
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Costs control
An administration that comes from compensation benefits the company in terms of the retention of qualified personnel for the lowest payment it can. Similarly, the organization can control labor or labor costs as it can decrease employee turnover.
Types of remuneration
According to salary agreements, the remuneration could reward the worker by the company that provides his payment. According to this, it can be classified as follows:
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Salary performance
It refers to the type of compensation created by salary and its various components, which may include allowances and checks.
Remuneration in kind
Are those social benefits that a worker can receive from the company and for those that the employee cannot pay, such as payments for housing, health insurance or pension funds, among others.
Extraordinary remuneration
It's about the reward that an employee can get that stands out for his brilliant performance in the company, among those compensations that a boss may consider, prizes, bonuses and gifts can be mentioned.
Other ways to pay
A boss can propose to the employee, extend his vacation a few days or give him more days off, It can also offer you the benefit of corporate daycare in case the worker has children.
Remuneration systems
The different ways of making payments to workers can be classified according to the following categories:
Periodicity of payments
These are divided into monthly, biweekly and daily payment.
Factors incorporated into compensation
Here is included the ordinary salary which represents the daily shift and the integral salary which includes the work carried out during the working day and in addition to this, overtime, benefits and night shifts, among others.
Form of causation
According to this form, payments can be for fixed time salary, variable salary or piece rate salary.
What is mixed remuneration?
The mixed remuneration consists of two employers that an employee may have, one works for a minimum wage that is registered with social security and the other when the employee Employee works by hourly at wages, where normally the two companies bill a third party, which is where the company actually works. person.
What must be done to take advantage of mixed remuneration?
To take advantage of this, the following should be considered:
- Make voluntary contributions for the future retirementThus, in this way, what is being stopped can be completed. It is usually a favorable idea for saving and requiring social security.
- Another way is hire a retirement fund through an insurance company that covers the payments needed for social security savings.
- Provide a provision that allows you to have what you need in the event of a prolonged illness or illness.
What is piece rate pay?
It is the oldest form of work and incentive, where the income of the employees will depend of the result of their work, this is because the payment is made according to each piece or unit that is produce.
In that case, the position that can be provided with an hourly wage quota should be assessed, where it should be taken into account that the main thing is the planning of the payment that is made for each part. For this reason, it is necessary to assign a salary according to the average amount of time per unit, in this way it will be possible to evaluate how many units are made per hour.
The benefit that this type of work generates is that payments can be easily calculated and made depending on the performance of the worker and according to the number of pieces that are made. If an employee is efficient and quick to do his job, he can earn much more money.
Synonyms of remuneration
The remuneration has a lot of synonyms, among which we can mention: prize, remuneration, award, reward, bonus, scholarship, extra, gratification, fair, tip, Compensation, per diem, allowance, allowances, award, incentive, pay, reward, bonus, payroll, salary, profit, salary, among others.
