Jana Rahmani

Cheat Sheet

Employee value proposition It is about defining the essence of your company, what is
unique and what it stand for (The reason why people are
motivated to work) Because of Culture, money, team, location,
country. It is what makes employees attracted to work. OR It is
typically characterized as a combination of monetary and non-
monetary advantages offered by a business to its workers in
exchange for the skills, talents, and experience they bring to the
organization and the contributions they make
Total Compensation It is the total amount of money you pay your employees in
exchange for their services. It includes the employee's basic
wage (how much you pay the employee per hour or per year),
the total dollar amount of the fringe benefits you provide
(health insurance, paid time off, retirement plan, profit sharing,
gym membership, and so on), bonuses, and/or commissions
Pay Model Define compensation as forms of financial gain and tangible
services and benefits that employees receive as part of their
employment
Pay Mix The ratio of base salary to target incentives that make up On-
Target Earnings (OTE). OR It is the formula in which a
company use to be able to attract, motivate, reward, and retain
employees, and how to distribute resources
Total Cash It is the regular base salary or fee paid by the Company or a
Subsidiary to the Participant for a calendar year, inclusive of
extra types of remuneration such as bonuses, other incentive
payments, vehicle allowances, tax gross-ups, and other fringe
benefits. It includes: Base cash and short-term incentives
Total direct cash Is the value of fixed, variable and long-term incentives

Strategic Messaging Model Is the value-based communication framework that companies

employ in all interactions with stakeholders — employees,
Jana Rahmani
Cheat Sheet

prospects, customers, partners, and investors

Money Includes the size of the compensation package

Mix Secret formula to get the employee by shifting the elements of

compensation expenditures to the right element of pay mix to
get the candidate you want
Messaging How to communicate the pay mix to candidates

Operational efficiency take existing operation and remake it to make costs less and
better quality

Job Description A specific or detailed document that help us understand what a

particular position is about

Job Summary A brief description of a particular position

Job Task Is a brief list of tasks that employee should do

Benchmarking A process that matches internal jobs with market pay data or a
salary survey in order to identify the market rate for each
position
Compliance The process of ensuring that your firm and its personnel adhere
to all applicable laws, rules, standards, and ethical practices

Anti-trust Law Makes sure that the information is not shared directly to
competitors, but shared through trusted middle institution.
Information given should be old not new so business strategy
won’t be exposed
Minimum Wage The bare minimum of payment that an employer is compelled
to pay wage workers for work done over a specific time, which
cannot be decreased by collective bargaining or an individual
contract
Salary Range The salary range specified by companies for employees
performing a specific job or function. There is usually a
minimum pay rate, a maximum pay rate, and a series of mid-
Jana Rahmani
Cheat Sheet

range chances for pay increases in the wage range

Raise Increase in the salary but with staying in the same position

Promotion The act of raising someone to a higher or more important

position or rank which includes an increase in both salary and
position
Salary Structure Means how a company or members of leadership determine
how much an employee should get paid
Seniority Means longevity in employment together with any benefits of
employment that accrue with, or are determined by, longevity
in employment
Tenure Schedule The length of time an employee has worked for their current
employer

Performance Rating Raise in payment because of high performance.

Skill-based Structure Raise in payment based on qualification/education