Glossary
Pay Equity Act
is a law intended to ensure that equal pay is provided to both male- and female-dominated jobs with the same value or worth to the employer. It is intended to address gender-based wage gaps.
Pay for Time Not Worked
are employee benefits that cover a variety of circumstances in which employees receive pay even though they are absent from work.
Pay Grade
is a grouping of jobs of the same or comparable value to the organization. Each job within a pay grade will have the same pay range - minimum, midpoint, maximum. Movement to another grade is through promotions or demotions.
Pay Range
is the upper and lower limit of pay rates to be paid for jobs in a pay grade, from minimum to maximum. Movement through a pay range is a result of experience, seniority, training, etc.
Pay Structure
is a hierarchy of jobs within an organization. Jobs are ranked based on content and value to the organization. The pay structure includes all the pay rates for different jobs within a single organization, factoring in the number of pay grades/levels with or without ranges, differences between grades/levels, and the criteria used to determine the differences.
Pension Plan
is a plan that provides income to employees upon retirement as compensation for work performed now. Pension plans are provided by the employer and/or union, and employer contributions are usually matched by the employee.
Performance Appraisal
(Performance Review) is a process in which a manager evaluates an individual’s past performance and sets goals for their future.
Performance Management
is a process that not only focuses on the performance of the individual but also can be expanded to encompass groups and the organization as a whole. This is accomplished through goal setting, feedback, encouragement and support and rewards for successes.
Performance Pay
is a monetary onetime payment made to an employee, team or the whole organization for achieving results established at the beginning of a performance cycle.
Point Method
(Point Value; Point Evaluation), is a quantitative job evaluation process that assigns points to each job, based on compensable factors. These points are then scaled and weighted, and a total score tabulated for each job. A job’s total points determine its relative value to the organization and hence its location in the pay structure.
Points
The numerical expression assigned to each degree level within each subfactor. (CUPE)
Premium
is the periodic amount under a contract of insurance in respect to benefits paid by the employer and/or employee to keep a policy in force.
Promotion
is an advancement in which an employee moves to a higher level position that usually requires further skills, education, experience and knowledge and pays a higher salary.