Exam 4 Review: Compensation Study Guide

A set of vocabulary flashcards based on the Exam 4 Compensation Study Guide, covering employment types, benefits, executive rules, global compensation, and management systems.

Voluntary Part-Time

Employees who choose to work fewer hours for personal reasons (school, family).

Involuntary Part-Time

Employees who want full-time work but can only find part-time or had hours reduced.

Leased Employee

Workers employed by an agency but working for a client company long-term.

Independent Contractor

Self-employed individuals providing services under contract; they control how work is done.

Cliff Vesting

Becoming $100\%$ entitled to employer retirement contributions after a specific period of service.

Employee Assistance Program (EAP)

Work-based programs for personal issues like mental health or stress.

Flexible Spending Account (FSA)

Tax-advantaged account for medical or dependent care expenses.

HMO vs. PPO

HMOs require a primary doctor and referrals; PPOs offer more flexibility and out-of-network options.

Integrated PTO

A single pool of hours combining vacation, sick, and personal days.

Sabbatical

Extended leave of absence for personal or professional growth.

Short-term/Long-term Disability

Income replacement for temporary ($3-6$ months) vs. permanent or long-lasting injuries.

Board of Directors

Elected individuals overseeing corporate management and executive pay.

Dodd-Frank Act

Federal law requiring "Say-on-Pay" for executive compensation.

Golden Parachute

Large guaranteed payout for executives if they are terminated following a merger.

National Labor Relations Act (1935)

Protects employee rights to organize and bargain collectively.

Required Subjects of Collective Bargaining

Mandatory negotiation topics like wages, hours, and working conditions.

13th Month Salary

An extra month's pay typically given at year-end in many international markets.

Home/Host/Third-Country National

HQ-based (Home), local-based (Host), or from a different country (Third).

International Labour Organization (ILO)

UN agency setting global labor standards.

Repatriation

The return of an employee to their home country after a foreign assignment.

Reverse Culture Shock

Psychological distress when returning home after living abroad.

Works Council

Groups of employees with the right to be consulted on management decisions.

4 Types of Justice

Distributive (outcomes), Procedural (process), Informational (explanations), and Interpersonal (treatment).

Compensation Philosophy

A statement explaining the "why" behind a company's pay structure.

Contingent Workers

Non-permanent staff including freelancers and contractors.

HRIS

Digital system for managing employee data and payroll.

Pay Transparency

Disclosure of pay ranges or individual salaries within an organization.

Total Rewards Statement

Summary of total compensation including pay, bonuses, and benefit values.

Remote Work Benefits

Support for off-site staff, such as equipment stipends.

SHRM Certification

Professional credentials for HR expertise.

Work-Life Balance

The healthy split between work responsibilities and personal life.