Glossary
Cafeteria Plan
(Flexible Benefits Plan) is a customized benefits plan in which an employee may choose the benefits best suited to his/her needs. In most cases a common core package is mandatory, with elective programs available at the employee’s discretion. The employee may also choose to contribute for additional coverage.
Canada/Quebec Pension Plan
(C/QPP) is a government-sponsored pension plan, mandatory for all employed Canadians and funded equally by employers and employees.
Classification
is a job evaluation method based on job descriptions into which jobs are categorized by class descriptions such as “managerial” or “clerical” to name a few. Jobs are classified by comparing each job to the existing job classes and/or job families of characteristically similar positions and selecting the pay grade that best matches them. This method is popular with the services sector.
Comparable Value
The concept that male and female jobs that are dissimilar, but equal in terms of worth to the employer, should be paid the same. (Belcourt)
Comparable Worth
A doctrine that maintains that women performing jobs judged to be equal on some measure of inherent worth should be paid the same as men, excepting allowable differences, such as seniority, merit, and production-based pay plans, and other non-sex-related factors. Objective is to eliminate use of market in setting wages for jobs held by women. (Compensation)
Compensable Factors
are the most important characteristics of a given job, on which pay rates are established and relative worth evaluated. They are determined by their ability to further an organization’s strategy and relate directly to the work itself. The four major criteria most often used to measure jobs are skill, effort, responsibility and working conditions.
Compensation
may be in the form of financial returns, tangible services, and benefits received by employees as part of their employment. It does not include other forms of rewards such as recognition and interpersonal relationships etc.
Compensation Administration
the process through which employee earnings are calculated and the appropriate remittances are forwarded to employees, governments, and other agencies. (Long)
Compensation Differentials
Differentials in pay among jobs across and within organizations, and among individuals in the same job in an organization. (Compensation)
Compensation Mix
may include a part of base pay and/or performance pay and/or indirect pay or a relative proportion of each.
Compensation Objectives
The desired results of the pay system. The basic pay objectives include efficiency, equity, and compliance with laws and regulations. Objectives shape the design of the pay system and serve as the standard against which the success of the pay system is evaluated. (Compensation)
Compensation Strategy
is the organization’s plan for how compensation decisions on the types and amount of pay are made, based on the interests of the employees and keeping with the organization’s mission and competitive position in the market.