Severance pay is the compensation an employee receives from his/her company upon job elimination, being laid off, or when both parties agree to part ways. Severance pay is a mandatory compensation required by the law. Mandatory severance pay could range anywhere from a week’s wages up to eight weeks of wages.

Employee referral bonus programs have always been a favored recruitment strategy for many organizations. Each referral bonus program is designed differently from company to company but essentially it is a program where a reward is offered to employees who bring in qualified people for the company.

An organization needs talented and skilled individuals to build a successful business. Because these talented people are highly sought after, an attractive pay structure is often the key to bringing the best candidates on board. Studies have shown that a fair compensation system is among one of the most effective ways in retaining and motivating employees.

Even in the current economy, certain skill sets remain difficult to find, according to the 2009 Salary Guides from Robert Half International. The recently released guides point to modest overall salary increases for accounting, information technology (IT) and administrative roles, but highlight specialized expertise that can enhance a professional’s marketability.

Every employment relationship is governed by an employment contract, whether written or unwritten. Letters of Offer identify employer and employee obligations and rights; as such, they’re important documents for limiting an employer’s liability. In practice, these letters are referred to only if an issue arises affecting the employment relationship.

A pay philosophy is a company’s commitment to how it values employees. A consistent pay philosophy gives the company and the employee a frame of reference when discussing salary in a negotiation.

Free salary information can help you get an edge in compensation negotiations with candidates. Although employers usually try to keep a tight lid on salary information, times have changed, bringing forth a variety of free sources for compensation information.

Compensation refers to all forms of pay and rewards received by employees for the performance in their jobs including all forms of cash, benefits, services, and perks. It is important to recognize and communicate your “total” compensation as “all” the pay you are providing your employees.

Companies should assume that employees will eventually walk into the office with a salary report detailing market pay for their job. That way, when it inevitably happens, the employer can be prepared and avoid seeming defensive.

Paying people fairly is good for business. Underpay, and employees will eventually look for a better offer. Overpay, and the payroll budget and profitability will suffer. That’s why companies use market data to research the value of their jobs. But what is “market data” anyway?