Danielle K. Ellison
22418 15 East Street
Mineral, IL 61344
Student ID 21820664
Compensation Management, HRM 210
41200800

People all over the world are paid in numerous forms of payment schedules. “Compensation is payment in the form of salary or wages” (1). “A salary is a fixed compensation paid for regular services” (2). “A wage is a payment usually of money for labor or services usually according to a contract and on an hourly, daily, or piecework basis “(3). Merriam-Webster listed the fore stated definitions and though they are semi accurate, they are vague and not specific. Here in the United States, from my personal experience and knowledge, I will define these three words. Compensation is the sum of profits you receive from working a job including money and benefits. A salary is the money you make when you work a job, it is a fixed amount more often than not. Wages is how the money you will make is calculated in a paying job. For example, your hourly wage, annual wage, your piecework rate, or your cents per mile rate, are all different way to be paid in numerous different jobs or trades.
Annual salaries are given out most often as a form of compensation in high executive positions and management positions. These positions are often very demanding and call for a lot of personal time to dedicate to a position. Often a management position has more work at variable hours. Salary positions are also given to people on call in a certain line of work. In a line of work where you are on call such as an IT Tech expert, or a plumber you may have to be at a place at any time of the day including after hours. An hourly wage would not be accurate enough for a person on call. Also, in an on call position like an EMT, you may be in a hurry or in a frustrating position where filling out a timecard would be an imposition to a person in such line of work.
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