What are the different reward models?
Reward models are structures and formats used to provide compensation to individuals in return for their efforts on behalf of the organization. The exact type of models used will depend a lot on the nature of the relationship between the individual and the organization, and any provisions on the compensation that are included in the contract that regulates this relationship. Many organizations operate with several reward -based remuneration models or employees, some of which are used for hourly employees, while others serve as a basis for compensation related to paid employees.
One of the more common reward models has to do with an hourly reward. This model will include a basic wage per hour provided to employees who are compensated by a fixed rate per hour as part of their employment. Depending on the nature of business, this model may also include provisions for retirement allowances or other forms of pension fund, bonuses and even partial PLATBA health insurance in the total compensation package.
Similar reward models are often introduced for paid employees. Along with the basic salary included in the package, there may also be bonuses and commissions paid under the auspices of programs that are currently introduced with the employer, shares ownership and employer's contributions to the pension plan. The elements found in this type of compensatory model are usually detailed in the employment contract, which makes it easier to determine the total value of the employment package.
Reward models can also be extended to individuals who work with companies as independent suppliers. For these models, the compensation for an hour or a flat rate for each service unit that is provided by the client may be provided and received. For remuneration models, do not pay other forms of refunds such as health insurance coverageOLI Some companies can serve as means for suppliers to obtain insurance through a group plan, while the supplier pays all the cost of coverage.
The choice and complexity of remuneration models will depend very much on the nature of the business itself. Smaller businesses can work with the use of a combination of basic hourly and paid models, while a larger company can find that models combining different forms of compensation over basic salary or wages are essential to compete for qualified employees in the local economy. Working laws will also have an impact on how the remuneration models are structured, sometimes it will ensure that employees are offered a wage that meets minimal government standards.