This template provides a basic structure for your employee compensation and development policy.
As much as you love this job, you’re here for a paycheck – we get it. So in our employee compensation and development policy we’ll dive into how exactly you’re compensated! Plus, all the other ways we invest in you, including:
Our employee compensation and development policy applies to [all full-time and part-time employees] of the company as well as any parties that represent the company or undertake tasks on its behalf.
Employee compensation is everything (money and non-money payments) that you get in exchange for the work you do. So, on top of your regular paid wages, compensation also refers to benefits and perks.
Professional development refers to any opportunity that helps you build the knowledge or skills you’ll need to advance your career.
Our employee compensation and development policy is designed to ensure you are getting compensated competitively and fairly for the work you do. Please, families yourself with your compensation status, how our pay structure works, and the other development opportunities available to you.
There are two types of employees under FLSA guidelines:
If you are unsure as to whether you should be exempt or not, please ask HR to clarify your status.
The FLSA excludes some types of jobs (e.g. railroad workers, truck drivers) because they are covered by other federal laws. Some other workers, like outside salespeople, are excluded by definition. Feel free to ask HR for clarifications any time.
The requirement to track employee time is separate and distinct from the need to report time for payroll payment purposes. FLSA requires that a record of total hours worked each day be maintained for all employees considered non-exempt.
The “Time Tracking Record” is an appropriate mechanism for use in tracking time. Records must:
Employees on Fixed Schedule: A non-exempt employee may keep a record showing the exact schedule of hours and merely indicate whether he/she followed the schedule. Where variances to the fixed schedule occur, actual hours worked for that day must be recorded. Using the Time Tracking Record:
Occasionally, we may need you to work more than your regular working hours. We will pay for overtime work according to local and national laws.
[Insert this if employees are in the U.S: If you are an exempt employee, you are not entitled to overtime pay by federal law. In the event that an exempt employee must work overtime, we will set a cap for overtime hours at [10 hours per week] to prevent overworking and burnout.
If you are a non-exempt employee, you are entitled to overtime pay of one and a half times your wage. Please record your overtime hours accurately, so we can calculate your pay correctly. We also ask you to work overtime only after it’s authorized by your supervisor to make our record-keeping easier.]
This section is super straightforward. You get paid (your salary or wage) [biweekly on Fridays/on the 15th and last day of every month].
If you are hourly, be sure to track all your hours using [our timesheet software]. That way, we can compensate you for all your hard work.
Our employee bonus policy explains how our company distributes bonuses to employees. We want to reward employees whenever possible since we all contribute to our company’s success with our hard work. This policy clarifies how we choose which employees to reward and how we calculate bonus amounts.
This policy applies to all regular full-time and part-time employees and employees with contracts of [one year and more.] Seasonal employees, interns and temporary employees with a contract of less than [one year] are not eligible for bonuses.
We may modify this policy and our bonus plans at any time without notice.
Only written promises of bonuses will be considered valid. If your manager or another executive verbally promises you a bonus, they can not follow through unless they put it in writing and HR approves it.
Bonuses can be either discretionary or non-discretionary:
One important difference between discretionary and non-discretionary bonuses in the U.S. is that non-discretionary bonuses must be included in overtime pay calculations. Our company will follow its legal obligations.
Our company rewards employees for outstanding individual performance, as well as their contributions that help us achieve company goals. For this reason, we award bonuses in three forms:
Our company may award lump-sum bonuses (one-time bonus payments) to employees who show exemplary performance. We define “exemplary performance” as:
When managers know their team member deserves a bonus, they should send a formal written recommendation to their Department Head and HR, explaining how their team member showed exemplary performance.
HR will:
Lump-sum bonuses are discretionary.
Our company’s policy gives the executive team the ability to decide on year-end bonuses for all employees. There are 2 conditions for this bonus:
If these 2 conditions are satisfied, then our company will give bonuses to employees who:
We will pay out bonuses according to this tiered system:
Our company may set up incentive plans at the beginning of each year. These plans may involve:
Keep in mind that bonuses are subject to taxation (local, state and federal taxes).
We owe our success to our employees. To show our gratitude, we will invest in your professional development. We want you to feel confident about improving your efficiency and productivity. We also want to help you achieve personal growth and success.
Each employee has [$1,000] annually to spend on educational activities or material. Subscriptions and books are included in this budget unless they are necessary for you to complete your everyday duties. Send your expenses to HR [by email/ expenses software].
Apart from online courses, we offer these training opportunities:
Professional Development is a collective process. Team members and managers should regularly discuss learning needs and opportunities. And it’s HR’s responsibility to facilitate development activities and processes.
Have a question about this policy? Reach out to [HR contact].