Salary Survey and Wage Terms

Job - 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 party.

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 purposes.

Job Evaluation Committee - The committee that conducts job evaluations.

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 of work.

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 title.

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 payment.

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 competition.

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 the median.

Merit Bonus - An incentive award based upon an individual's performance.

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 range.

Merit Pool - Total amount of dollars available for salary increases.

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 prevalent.

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 taxes.

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 parking space.

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 states.

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 notice.

Operating Income - A measure of a company's' earning power.

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.

Option Profit - 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.

Outside Payroll - Refers to costs of benefits that do not include the company's' direct payroll.

Overlap - The degree by which there is overlap in adjacent pay ranges.

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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