In a BLR webinar titled "Compensation 101: Essential Secrets and Strategies for HR Professionals," Paul R. Dorf outlined the typical components that comprise a total compensation package (TCP).
The TCP elements include:
- Base salary, which is fixed
- Bonuses and short-term incentives which are variable
- Long-term incentives, variable
- Benefits, fixed
- Perquisites, variable
- Supplemental benefits, variable
- Employment agreements, selective
Not everyone is eligible to receive all of these compensation components. For example, entry-level staff may not have employment agreements or supplemental benefits, whereas executives may receive all of the components.
Paul Dorf is the Managing Director of Compensation Resources, Inc. (CRI). CRI (www.compensationresources.com) specializes in providing comprehensive Compensation and Human Resource consulting services. Dorf is responsible for directing consulting services in all areas of executive compensation, short and long term incentives, sales compensation, performance management programs, and salary admin programs.