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Deferred Compensation
Deferred compensation refers to a portion of an employee's pay that is held out and then paid out later. Deferred compensation can be used for various reasons, including as part of a retirement plan, stock options, or certain pension plans. Deferred compensation is often considered part of a benefits package.
What Small and Midsize Businesses Need to Know About Deferred Compensation
Any small business may choose to take advantage of deferred compensation for their employees as part of a benefits package. In terms of a retirement plan, a small business will alocate a percentage of the employee's pay into the retirement plan, and a professional will invest that amount.
Related terms
- Absence Management
- Furlough
- Onboarding
- Attrition
- Right to Work
- Employee Self-Service (ESS)
- Background Check
- Equity Theory
- Performance Management
- Diversity and Inclusion (D&I)
- Gamification
- Center of Excellence (COE)
- Succession Planning and Management
- Workforce Analytics
- Performance Improvement Plan (PIP)
- Employee Resource Group (ERG)
- Chief Human Resources Officer (CHRO)
- 9-Box Model
- Enterprise Applications
- People Analytics
