Other components of an executive compensation package may include such perks as generous retirement plans, health insurance, a chauffeured limousine, an executive jet, and interest-free loans for the purchase of housing. But there’s a lot more to your compensation package than a monthly check benefits and perks typically comprise about 25–33% of your total package and, the higher you go in an organization, the bigger role these components play. Compensation and benefits managers coordinate the work activities of their staff and properly administer compensation and benefits programs, ensuring work is completed accurately and on schedule similarly, compensation managers will be needed to analyze compensation policies and design competitive compensation packages.
In addition to a competitive salary, an employee benefits package is a standard – and expected - part of an employee total compensation package smaller employers tend to offer fewer components in the employee benefits package – and sometimes, no benefits at all. A compensation package is the combination of benefits that an employer offers to employees this may include wages, insurance, vacation days, guaranteed raises, and other perks strong compensation packages are often used to attract and keep good employees, and to promote certain company values.
Definition of compensation package: sum of direct benefits (such as salary, allowances, bonus, commission) and indirect benefits (such as insurance, pension plans, vacations) that an employee receives from an employer. Yes, base salary is a very important part of our compensation but it is just one part when we compare job offers, as we surely will given our new year resolutions (), the number to focus on is our total compensation. Compensation package meaning: the total payment and benefits that an employee receives for doing their job: learn more.