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What is a compensation offered to employees in exchange for services rendered beyond their base salary called?

  1. Buyout

  2. Bonus

  3. Bumping

  4. COBRA

The correct answer is: Bonus

The compensation referred to in this context is known as a bonus. A bonus is a form of additional financial reward that employers provide to employees for their performance or for completing work that goes beyond the standard expectations. Bonuses are often tied to specific achievements, such as hitting sales targets, project completions, or exceptional performance during a review period. They serve as an incentive to motivate employees and acknowledge their contributions to the organization's success. In contrast, a buyout typically refers to a situation where an employer offers a financial incentive for an employee to leave the company, which is not the focus of this question. Bumping relates to seniority rights in a layoff situation, where employees can "bump" less senior employees to retain their positions. COBRA stands for the Consolidated Omnibus Budget Reconciliation Act, which is a law that allows terminated employees to continue their health insurance coverage under certain conditions. None of these terms capture the idea of additional compensation for services provided over and above the regular salary like a bonus does.