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Financial WELLNess GLOSSARY

Benefits and Compensation

Definitions of workplace benefits, salary structures, and employer-provided perks that affect your total compensation.

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Additional Paid Time Off

Additional Paid Time Off

Employers may offer additional paid time off to be used for floating holidays (holidays for you to observe when you need them), volunteer time off to work with your favorite charity, and wellness time off to manage your physical or mental health needs.

Benefits and Compensation

Compensation Package

Compensation Package

The total combination of salary, benefits, bonuses, stock options, and other financial incentives offered to an employee.

Benefits and Compensation

Compensation Philosophy

Compensation Philosophy

A company’s formal statement that outlines how it plans to pay and reward employees, including salary, bonuses, and benefits.

Benefits and Compensation

Disability Insurance

Disability Insurance

Insurance that replaces a portion of an employee's income if they are unable to work due to illness or injury, with short-term and long-term disability options.

Benefits and Compensation

Employee Assistance Program (EAP)

Employee Assistance Program (EAP)

A work-based intervention program designed to assist employees with personal problems, including financial challenges, that might impact their job performance or well-being.

Benefits and Compensation

Employee Contributions

Employee Contributions

- Employee Contributions: The portion of premiums or other costs that employees are required to pay for their benefits, such as health insurance or retirement plans.

Benefits and Compensation

Employer Match

Employer Match

A company contribution to an employee's retirement plan that matches the employee's contributions, often up to a certain percentage of salary.

Benefits and Compensation

Flexible Spending Account (FSA)

Flexible Spending Account (FSA)

A pre-tax benefit account employees can use to pay for eligible healthcare expenses not covered by insurance.

Benefits and Compensation

Health Maintenance Organization (HMO)

Health Maintenance Organization (HMO)

is a health insurance plan that limits coverage to a network of providers, and usually doesn't cover out-of-network care except in emergencies. HMOs are a type of managed care plan that offers integrated care and a focus on prevention and wellness

Benefits and Compensation

Health Savings Account (HSA)

Health Savings Account (HSA)

A tax-advantaged savings account for individuals enrolled in high-deductible health plans (HDHPs), used to pay for qualified medical expenses.

Benefits and Compensation

High-Deductible Health Plan (HDHP)

High-Deductible Health Plan (HDHP)

A health insurance plan with lower premiums and higher deductibles than traditional plans, often paired with an HSA.

Benefits and Compensation

Income Protection Insurance

Income Protection Insurance

Insurance that provides employees with a percentage of their income if they are unable to work due to illness, injury, or disability.

Benefits and Compensation

Performance Bonus

Performance Bonus

A financial reward given to employees based on their job performance, company performance, or achievement of specific goals.

Benefits and Compensation

Preferred Provider Organization (PPO)

Preferred Provider Organization (PPO)

is a type of health insurance plan that offers a network of healthcare providers to its members. PPOs offer more choices for providers and services than other types of insurance, but they usually have higher premiums, copays, and deductibles.

Benefits and Compensation

Self-Funded Health Plan

Self-Funded Health Plan

A health insurance plan where the employer assumes the financial risk for providing healthcare benefits to employees, rather than paying premiums to an insurance company.

Benefits and Compensation

Severance Pay

Severance Pay

A financial package offered to employees who are laid off or leave the company, often based on tenure and salary.

Benefits and Compensation

Total Compensation

Total Compensation

The total value of all forms of compensation an employee receives, including salary, bonuses, benefits, and any additional perks or rewards.

Benefits and Compensation

Tuition Reimbursement

Tuition Reimbursement

A benefit where employers cover the costs of education or training for employees, helping them improve their skills or qualifications.

Benefits and Compensation

Variable Pay

Variable Pay

Compensation that varies based on performance, such as bonuses or commissions, often used to incentivize employees to meet specific goals.

Benefits and Compensation

Voluntary Benefits

Voluntary Benefits

Optional benefits that employees can choose to purchase, such as life insurance, critical illness insurance, or accident coverage.

Benefits and Compensation

Wellbeing Benefits

Wellbeing Benefits

Non-salary benefits offered by employers to support employees' physical, mental, and financial health, such as wellness programs, gym memberships, or financial coaching.

Benefits and Compensation