In any company, there are strategic pay plans that companies like the GWC Valves International give and these include total rewards such as monetary rewards and nonmonetary rewards. Monetary rewards are compensation given to the employees whereas the nonmonetary rewards are personal growth rewards and interpersonal rewards.
There are two types of monetary rewards, which are cash payments, and then there are benefits. When it comes to cash payments these include base pay, merit pay and incentive pay. Base pay is the minimum wage plus commissions normally for a sales representative. Merit pay is basically a bonus, this is for profitability, and is based on the employees performance since it is a salary increase. There is also incentive e pay which there are two types including commissions which is a percent allocated to how many sales you make and there is also piece work which is a pay based on the number of items processed per hour. When it comes to benefits these include vacations, insurance and pensions. For vacations, every company is required to give their employees a 4% pay of their gross salary or 2 weeks of paid vacation after 50 weeks of pay. When it comes to insurance there are three common types which include medical, which is usually for families, couples, or simply one employee, there is life insurance which is x2 your annual salary but if you have a family, proper life insurance is 5x your annual salary=, then finally there is disability insurance which include long-term disability and short-term disability. There is also pensions which there are three types such as retirement income which can be set up with a 401k plan, or there is survivor or death benefits that are payable to the employee’s dependents and there is disability benefits that are also payable to the employees dependents and themselves if they have disabilities.