It is safe to say that remuneration might just be one of the favourite things people like to ask about before accepting any job. Also, as a finance or business management student, the term remuneration is often come across during calculations and explanations.
Because remuneration is very important, it is often discussed by employees, as well as employers. Remuneration is defined as the total compensation an individual receives for their work, services, or performance.
Though considered to be rewards given after rendering a service or labour, remuneration extends beyond that, as it encompasses various elements, including salary or wages as you may have it; it also includes benefits, bonuses, allowances, and other perks.
Remuneration exists for a reason: it is to acknowledge, recognise, and compensate efforts financially. This is why remuneration is incomplete without financial compensation. In return, employees are motivated to achieve organisational goals, as well as contribute to the success and growth of the business.
In simple terms, remuneration encompasses the following:
Wages or salary
Benefits
Allowances
Bonuses or incentives
Stock options, and other perks provided by organisations.
Types of Remuneration
Remuneration can be performance based remuneration in form of bonuses and commissions; perks; or monetary.
Though remuneration is used interchangeably for pay, salary, wages, emoluments, benefits, and compensation, however it is still recognised for what it truly is.
What is the Meaning of Desired Remuneration?
From the word desire, you can imagine what a desired remuneration looks like. What does it mean to be paid a desired remuneration?
As an employee, can you imagine what you thought your first pay would be? Now, let’s see what desired remuneration really means.
Desired remuneration is the compensation that an individual readily expects or prefers in exchange for their work, skill, or service. Desired remuneration consists of everything enveloped in form of compensation. It consists of the benefits, salary, bonuses, and perks in accordance with industry standards.
An employee with a specific desired remuneration in a banking sector is different from another employee with a desired remuneration in the education industry.
This is why it is said that factors such as job role, qualification, location, experience, and industry determine the level of desired remuneration. Though desired does not mean limited in action. Because it is a desire that should prevent it from being communicated. It is only right to communicate this early during the job interview phase where the recruiting or hiring officer is aware of your expectations.
Some assume that employers should know the trend in other industries and apply the same metric when determining an employee’s remuneration.
Findings have suggested that desired remuneration should be cited in resumes, job applications, and cover letters to assist employers match prospective employees expectations with reality.
As an employee, will you take the cue going forward in communicating your desired remuneration in your next job application? Also, as an employer, what is your action going to be when job seekers indicate their expectations during the recruitment process?
Communicating desired remuneration accurately helps organisations assess whether or not they are able to meet candidates’ expectations, which in turn provides a means of streamlining the hiring process.
Examples of Desired Remuneration
Examples of Desired remuneration are monetary benefits, non-monetary benefits, perks and incentives, all of which could be based on what a candidate has researched according to industry standards, personal expectations, or opportunity for something better.
Remember that communication in remuneration is important, whether or not it is something desired. This not only saves the candidate from disappointment, but also saves the time of organisations during the recruitment process.
Let us know what you’ll be doing as an employee or employer with desired remuneration.
