Salary Survey and Wage Terms
- Defined duties that a person performs for pay.
Job Analysis - A detailed study of the requirements necessary
to complete a job, taking into consideration the order of operation, material
and machinery needed, and the necessary qualifications of workers.
Job Description - A written summary describing a particular
job classification or position. This written document identifies a job's
title, principal duties, and responsibilities. In addition, job descriptions
usually outline the knowledge, ability, skills, and effort nee
Job Documentation - Physical evidence, such as a written
contract, which explains the responsibilities, rights, and duties of each
Job Duty - Something that you have to do because it is
part of your job.
Job Enlargement - The act of increasing in size, volume,
or quantity or scope.
Job Enrichment - Act of making a job fuller, more meaningful
or more rewarding.
Job Evaluation - The process of analyzing positions to
fit them into some type of hierarchy for salary administration and valuation
Job Evaluation Committee - The committee that conducts
Job Family - Jobs that are affiliated by having the same
nature of duties.
Job Grade - Measure of quality or accomplishment.
Job Responsibility - Ability or necessity to answer for
or be responsible for one's conduct.
Job Satisfaction - The contentment you feel when you
have done something right.
Job Sharing - Two people, typically in career-oriented
professional positions, performing the tasks of one full-time position
in order to enjoy more flexibility in their personal schedules, typically
for child or dependent care. Salary and benefits are prorated.
Job Specifications - A detailed, exact statement of particulars,
especially a statement prescribing materials, dimensions, and quality
Job Title - A summary for all the duties for a particular
job or position.
Keogh Act - The Self-Employed Individuals Tax Retirement
Act of 1962 (also called HR-10 or the Keogh Act), and its subsequent amendments,
made it possible for owner-employees of unincorporated businesses and
other self-employed persons to be covered under qualified retirement plans.
Keogh Plan - A tax deferred pension account available
to the self-employed.
Knowledge Based Pay - Often an extension of work redesign
efforts, pay-for-knowledge plans reward employees for increasing the depth
and breadth of knowledge and skill and the utilization of those skills.
Labor Grade - Salary classification to a specific job
Labor Market - The market in which workers compete for
jobs and employers compete for workers.
Living Wage - A wage sufficient for a worker and family
to subsist comfortably.
Long-Term Incentive Plan - An incentive plan typically
limited to executives. It requires a level of performance for a predetermined
amount of time, for the maximum benefit to the employee.
Long-Term Income Protection - Insurance plans that provide
financial protection in the event of retirement, disability, and financial
security for family needs.
Lost Wages - Lost wages is generally an element of damages
recoverable from the defendant under state law. Lost wages is not the
same as loss or reduction of future earnings. The plaintiff has the burden
of proving to the court or juries the damages that he or she has suffered
as a direct result of the defendant's wrongdoing. Generally, testimony
of a medical expert may be needed to prove the reason and type of disability
preventing the plaintiff from earning his or her regular wages. Proof
of the wages actually lost is also part of the evidence needed to substantiate
a claim for lost wages. It is important to determine if your case allows
recovery for lost wages and what evidence is needed to prove your damages.
In the event of injury, illness, or death due to work-related factors,
the Worker's Compensation system covers employee lost wages. For more
information on lost wages, contact a qualified attorney.
Lump Sum Bonus - An award that is paid in a single cash
Lump Sum Distributions - The payment to an employee (or
the employee's estate) from a qualified retirement plan that is equal
to the full value of the employee's' account. The payment must be made
within one tax year of the employee's' death, disability, separation from
the employer's service, or after the employee reaches age 591/2. A lump
sum distribution must be transferred directly to an individual retirement
account in a trustee-to-trustee transfer, or be subject to 20 percent
withholding on the distribution.
Lump Sum Incentive Award - An incentive award that is
paid in a single cash payment.
Lump Sum Increase - An increase in pay made in the form
of one large payment.
Lump Sum Merit Payment - Merit pay in the form of one
lump sum cash payment. This is separate from the base pay.
Lump Summing - A method of determining expatriate employee
compensation. In this approach, a lump sum is provided to an expatriate
to spend as he or she wishes. It can be broken into lump sums for pre-departure,
at the post, and repatriation.
Market Based Salary Increase Budget - An organization's
budget to increase salaries that is estimated by their knowledge of the
Matching Contributions - Contributions that are made
to an employee's' 401(k) PLAN by their employer. The intent is to match
the employee contribution to a pre-set dollar or percentage maximum.
Maximum Reasonable Compensation - In order for executives
to avoid taxes and penalties, the total compensation package, including
bonuses and benefits, must be ''reasonable.'' IRS regulations define ''reasonable''
as the amount that would ordinarily be paid for like services by similar
organizations under similar circumstances. Unreasonable compensation pertains
to owner/managers only. Rock stars, athletes, executives who work for
a Board of Directors, lawyers working on contingency fees, and many others
may appear to be ''unreasonably compensated.'' Under the definition above,
this challenge only occurs to the owner/manager of a regular U.S. ''C''
corporation. (ERI knows of no cases in Canada, Mexico, etc.). ERI's Executive
Compensation Assessor software reports maximum reasonable compensation
for top management in 2,000 industries.
Mean - A mean is the result of dividing the sum of two
or more quantities by the number of quantities. See AVERAGE.
Median - One type of norm measure found by arranging
the values in order and then selecting the one in the middle. Therefore,
half of the numbers are less than the median, and half are higher than
Merit Bonus - An incentive award based upon an individual's
Merit Increase - A raise in an employee's' salary due
to goal achievement and/or other criteria.
Merit Matrix - A process by which an individual's' salary
increase is determined by using performance and pay within the salary
Merit Pool - Total amount of dollars available for salary
Merit Progression - A process by which an employee progresses
through a wage range due to performance or other measurable criteria.
Merit Rating - A process of evaluating the performance
of an employee. This is usually used to determine work assignments, promotions
and salary increases.
Minimum Bonus - The minimum annual amount that is to
be earned under any plan.
Minimum Wage - The lowest allowable hourly wage that
an employer can pay an employee.
Mode - In a set of observations, the number that is most
National Average Earnings (NAE) - A measurement, per
individual country, of the average salary per individual.
National Compensation Survey (NCS) - A survey of salaries,
wages, and benefits produced by the U.S. Bureau of Labor Statistics. Includes
local, regional, and nationwide data. The NCS is designed to replace the
Employment Cost Index (ECI), the Occupational Compensation Survey Program
(OCSP), and Employee Benefits Survey (EBS).
Nature of Work - Information about a specific occupation
that describes its duties and responsibilities.
NCS - The National Compensation Survey (NCS)is the U.S.
government's survey of salaries, wages, and benefits produced by the U.S.
Bureau of Labor Statistics. It includes local, regional, and nationwide
data. The NCS is designed to replace the Employment Cost Index (ECI),
the Occupational Compensation Survey Program (OCSP), and the Employee
Benefits Survey (EBS).
NEC - Stands for: not elsewhere classified.
Net Income After Tax - An individual's' or company's
profit after taking into consideration all other expenses and income and
Non-Compete Agreements - A condition of an employment
contract that states a specific time period during which the employee
cannot compete with the employer if the employee is terminated.
Non-Insured Pension Fund - A pension fund that has not
been funded by insurance contracts.
Non-Qualified Annuity - An ANNUITY that has been funded
with money that was previously taxed in the same year that the funds are
to be deposited.
Non-Qualified Deferred Compensation Plan - Typically
used for senior executives and highly compensated employees, this retirement
income plan does not meet the guidelines for a qualified plan, therefore
it does not meet the criteria to be eligible for the tax advantages of
a qualified plan.
Non-Qualified Foreign Plan - A foreign plan that is no
longer qualified due to termination or reversal of a section 404A election.
Non-Qualified Pension Plan - A pension plan that does
not meet IRS requirements to receive positive tax benefits, due to the
increased benefits compared to what is allowable for a qualified plan.
Non-Qualified Stock Options - A stock-option that is
part of a compensation package that does not meet the IRS guidelines for
a qualified stock option. The employee is taxed at the beginning if the
value of the stock is known, or at the end when the employee exercises
the option if the value of the option in unknown. These options are typically
offered to executives.
Noncash Incentives - Incentives that are not a direct
cash payment, such as comp time, a membership to a club and a reserved
Nonfinancial Rewards - Any recognition given to an employee
by an employer other than cash.
Nonmonetary Awards - An award that is not cash.
North American Industry Classification System (NAICS)
- Developed by the United States, Canada, and Mexico to provide comparable
statistics of industrial production across the three countries and replace
SIC. NAICS also provides for increased comparability with the International
Standard Industrial Classificat
Occupation - An activity that provides a regular source
of income and that is common to various companies.
Occupational Differentials - Wage rates that have stable
differences among occupations.
Occupational Employment Statistics (OES) - Occupational
Employment Statistics that provides employment and wage estimates by occupation
for selected metropolitan areas, as well as the nation and the individual
Occupational Outlook Handbook - Provides general information
on jobs, occupations, job categories.
OES - Stands for Occupational Employment Statistics (OES)
that provide employment and wage estimates by occupation for selected
metropolitan areas, as well as the nation and the individual states.
Office of Federal Contract Compliance Programs - Under
the Vocational Rehabilitation Act of 1973, the agency is to enforce affirmative
action for government contractors.
Office of the Superintendent of Financial Institutions
- An executive agency in Canada that is responsible for administering
insurance laws for the provinces.
On-Call Pay - A pre-determined amount of compensation
that is provided to an employee who is willing to report to work on short
Operating Income - A measure of a company's' earning
Opportunity Cost - The cost of spending funds on one
investment instead of another.
Option - The right to buy or sell a specific amount of
a given stock, index, commodity, currency, or debt at a specified price
during a specified period of time.
Option Exercise Price - The price that will be paid to
purchase shares covered by a stock option.
Option Grant Date - The date that a stock option term
begins and the option become effective.
Option Performance Vesting - An option becomes exercisable
during its term based on certain performance objectives.
- When the price of the shares is more than the exercise price at the
time the shares are exercised.
Ordinary Income - According to the IRS, all income that
is subject to ordinary tax treatment.
Ordinary Income Tax - An individual's' tax paid on earnings
from all sources of income, except those subject to CAPITAL GAINS TAXATION.
Out-of-Pocket Limit - The dollar amount that an employee
is responsible for paying for medical care during a certain period of
time, usually a calendar year. The insurer pays 100% once the out-of-pocket
limit has been reached.
- Refers to costs of benefits that do not include the company's' direct
Overlap - The degree by which there is overlap in adjacent
Overriding Commission - Commission that is earned by
the field office manager and is based upon the business that is created
by the agents in the office.
Overtime - If a nonexempt employee works more than a
40 hour week, the Fair Labor Standards Act of 1938 (FLSA) requires that
those employees be paid one and half times their normal salary.
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