Compensation - Basis for pay

6 important questions on Compensation - Basis for pay

In which four types can we distinguish bases for pay?

1. Task / role based
2. Knowledge / experience based
3. Seniority based (scales determined by CBA)
4. Status and reputation

What are the five contract types?

- Permanent contract; onbepaalde tijd
- Temporary contract; tijdelijk contract
- Absence of a contract; de medewerker ontvangt direct na uitvoering beloning. (zwart werken)
- Fulltime contract; 1.0 full FTE
- Parttime contract; <1.0 full FTE

Most common: fulltime permanent contract.

What is the downside of a temporary contract?

Low commitment
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What are the three trends regarding contracts after the economic crisis?

1. Increased number of temporary contracts.
2. More contract working.
3. Increased popularity of payrolling.

These trends have the purpose to give organizations more flexibility and less financial risks.

What are the three key concepts of the expectancy theory?

1. Expectancy --> the individual employee believes that a particular degree of effort will be followed by a particular level of performance.

2. Instrumentality --> the perceived link between employee behaviour and pay.

3. Valence --> the positive and negative value people place on outcomes.

What is the Jan tinberg norm?

This is a normative suggestion that the top manager cannot earn more than 5 times the salary of the employee at the lowest level of the company. This is mainly country-dependent. In The Netherlands we have the Balkenende Norm.

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