A reward is the action for which a product or service is paid. This action normally occurs in relation to economic activity, specifically with a worker's salary, which is equivalent to his or her remuneration.
A figure influenced by determining factors
Although remuneration and salary are synonymous terms, it must be borne in mind that in both cases we are talking about a very general concept. In practice, the remuneration of a worker is much more complex, since there are a whole series of concepts that intervene in it (if the amount is net or gross, the salary band or the corresponding professional category, the related taxes or fees, etc).
The idea of remuneration implies a prior agreement between two parties: one that pays the agreed remuneration (generally an amount of money) and another that receives it. On the other hand, there is another essential issue in this action: the exchange of one thing for another. As a general rule, in compensation there is a part that offers its time, effort and skill and another part that offers its money in return.
Despite the fact that money is the most frequent means in economic relationships and, therefore, in the act of retribution, this is not always the case. In fact, a gratuity is a form of retribution and can be done through a personal favor or gift. Something similar happens with a reward or a bonus.
Compensation in kind
When giving a salary, it is possible to supplement the agreed money with another element, payment in kind. It consists of rewarding a worker with a service, a consumer good or a right. Let's take a concrete example. A company finances courses for workers, who do not have to pay any amount for them. The course is a payment in kind and it is a very widespread remuneration.
Remuneration in kind is a salary supplement, a way of rewarding the employee through something other than money but that has an economic value. This mechanism offers a number of advantages. For the employer it is a way to keep the worker satisfied and loyalty. In addition, from a fiscal point of view, this system has a number of positive aspects. On the other hand, the worker receives compensation for which he would have to pay in other circumstances (some companies offer loans with an advantageous interest and thus the employee gets better conditions).
Flexible pay
The world of work is in a process of permanent change and this reality affects the concept of remuneration. Traditionally, the amount received has been fixed and the salary increase occurs based on the rise in prices and the pact between employers and workers (the collective agreement). However, in some countries it is quite common for remuneration to be flexible, that is, with a fixed and stable part and another part that depends on the worker's productivity. This variable introduces a new element in labor relations: higher productivity, higher salary.
