Total Compensation (TC)
Total compensation includes all of the monetary incentives a company provides the employee with in return for work. Most often, they include your base salary, a bonus, equity, and benefits.
What is included in total compensation?
Total compensation typically includes base salary, bonuses, benefits, and other forms of compensation such as stock options or profit sharing. When comparing two job offers, it is important to use the same definition and assumptions to compare TC.
How is total compensation determined?
Total compensation is typically determined by an organization's compensation committee or human resources department, taking into account factors such as job responsibilities, qualifications, and market rates for similar positions.
How does total compensation differ from base salary?
Total compensation includes all forms of pay and benefits an employee receives, while base salary is just one component of total compensation and refers specifically to the fixed amount of money an employee is paid for their work.
How can employees negotiate for a higher total compensation package?
Employees can negotiate for a higher total compensation package by researching market rates for similar positions, highlighting their qualifications and accomplishments, and being prepared to discuss their desired salary and benefits.
How does total compensation differ from gross pay?
Total compensation includes all forms of pay and benefits an employee receives, while gross pay is the total amount of money earned before taxes and other deductions are taken out.
