Types of Compensation

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There are some types of compensation that we know in the empowerment of human resources. Typically, giving these compensation types depends on each management. So, there is difference in compensation between one management and other management.

Health worker

Mathis and Jackson (2002) divided the compensation into two types; intrinsic (internal) and extrinsic (external). Internal compensation includes praise earned for completing a project or successfully meeting some work purposes. They also said that the other psychological and social effects of compensation are also illustration of internal compensation.

External compensation is measured, has the monetary and non-monetary rewards. External compensation is divided into two types; direct compensation and indirect compensation; the direct compensation includes base salary and variable salary, while indirect compensation includes employee benefits.

Leap and Crino (1993) classified the types of compensation as follows:
1. Wages and salary, wage is a payment for work based on the time per hour or per day, while salary is a payment for the work by the week, month, or year.
2. Incentive programs are additional compensations beyond the salary or wages, incentive programs are in the form of bonuses or stock ownership of entity.
3. Employee benefit programs, these programs are given in the form of insurance, holiday allowance and pensions.
4. Perquisites, it is an income

Other types of compensation are health benefits, child allowance, wife or husband allowance, etc.

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