DECA Human Resources Management Practice Exam

What term refers to a form of compensation above the base salary or hourly wage?

1. Bonus

2. Absence

3. Benefits

4. Base Salary

The correct answer is: Benefits

The correct answer is that the term referring to a form of compensation above the base salary or hourly wage is "Bonus." A bonus is typically an additional payment made to employees on top of their standard compensation, often linked to performance, company profitability, or achieving specific goals. Bonuses serve as incentives to motivate employees and can vary in size and frequency based on the organization's policies and performance metrics. Benefits, while important in compensation discussions, typically refer to non-wage compensations such as health insurance, retirement plans, or paid time off, rather than direct monetary bonuses. Base salary refers to the standard amount paid to an employee before any additional compensation such as bonuses or benefits are considered. Thus, while benefits do contribute to overall compensation, they do not fit the specific definition of a payment that is above the base salary or hourly wage like a bonus does.