DECA Human Resources Management Practice Exam

What aspect of employee compensation includes health insurance and retirement plans beyond base salary?

1. Benefits

2. Buyout

3. Bonus

4. Bumping

The correct answer is: Benefits

The aspect of employee compensation that includes health insurance and retirement plans, in addition to base salary, is referred to as benefits. Benefits serve to enhance the overall compensation package provided to employees, addressing various needs such as medical care, financial security at retirement, and sometimes even lifestyle conveniences. This additional layer of compensation helps organizations attract and retain talent by offering more than just a paycheck, which can be a significant factor for employees when evaluating job opportunities. Buyouts, bonuses, and bumping do not encompass the range of additional compensatory offerings that benefits provide. Buyouts typically refer to a financial incentive for an employee to leave their position, bonuses are usually performance-based financial rewards that supplement base pay, and bumping often refers to a process in labor relations where a more senior employee displaces a less senior employee during layoffs or workforce reductions. Hence, benefits distinctly capture that comprehensive support which includes health insurance and retirement plans, making it the correct answer.