A fair profit for a small business is between 9% and 37%.
Types of Compensation
One of the forms of compensation is direct remuneration for services rendered by the employee. The term used for this is wages. It consists of four different types of compensation from the employer to the employee. They are salary, hourly, commission and bonus types of wages.
There are two different forms of compensation provided to employees; direct and indirect. Direct forms of compensation have a multitude of types or methods, from salaries to bonuses. Indirect compensation is primarily the various types of benefits and long term incentives. This article is an introduction to the terminology of compensation.
One of the forms of compensation is direct remuneration for services rendered by the employee. The term used for this is wages. It consists of four different groups of payment from the employer to the employee. They are salary, hourly, commission and bonus types of wages.
The primary goal of the Human Resources Department is to match the best person to the job in the company. This maximizes both effectiveness and efficiency for the company. In order to achieve the best matching of resources to the positions in the company, the human resources director should develop a position profile. This profile identifies the job title, describes the job in detail, pinpoints the best hours of work, defines the duties, and sets out the skills needed to perform the job.
One of the top three purposes of any business operation is to provide security to employees. This consists of financial reward, generating self-worth and creating an environment of maximum productivity. Every industry is hampered by outside forces that places restrictions or dampens the spirit of the employees. Before developing a policies and procedures manual, gain an understanding of the work environment.