The remuneration policy includes all principles and decisions that relate to pay, wages and remuneration. She is part of the Personnel policy. A distinction is made between:
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traditional remuneration policy
The traditional remuneration policy, which aimed to keep wages within reasonable limits. Personnel costs, which are rising steadily and often have the character of fixed costs, are a dominant cost factor. Careful control of personnel costs is therefore of vital importance to every company.
The performance-oriented remuneration policy, which assumes that the staff not only cause costs, but above all contribute or can contribute to profit. This makes remuneration an instrument of corporate management. This remuneration policy can be implemented by:
The success-oriented, variable remuneration, which is based on the degree of target achievement by the executives and is intended to motivate them to perform better.
The project remuneration
The project remuneration, which is based on the degree to which certain project groups have achieved their goals and are working on problem solutions that are important for the company.
The potential remuneration, which is also called potential wage and skill-base pay and is based on the employee's required qualification characteristics. They receive a fixed salary
for the basic material supply and additionally certain success bonuses.
The deferred compensation, which is also called deffered compensation. Here, the payment of parts of the employee's total remuneration is postponed and therefore not subject to immediate taxation. The accumulated amount is only taxed when the promised service is actually paid, e.g. B. after retirement.