Final answer:
The question pertains to the elements of employee compensation, including salary, benefits, perquisites, and legally required employer contributions. Total compensation encompasses direct pay and various benefits like health insurance, retirement plans, and employer payments to programs like Social Security and Medicare. Employers may also offer profit sharing and perks to boost productivity and provide incentives for employee development.
Step-by-step explanation:
The concept related to financial returns, including salary, allowances, and various forms of employee benefits, falls under the broad category of compensation in the business field. In addition to direct compensation such as salary, employees may receive a range of benefits which typically include insurance (notably health benefits), retirement plans (like defined benefit and defined contribution plans), and employer payments to legally mandated programs such as Social Security, Medicare, unemployment, and worker's compensation insurance. The total compensation also includes 'perquisites' or perks that are provided to employees, often in the form of supplemental pay or retirement and savings. Additionally, businesses may share profits and earnings with employees, which can incentivize productivity and contribute to career growth and development.
Understanding the breakdown of employee compensation is crucial for evaluating job offers and for businesses to develop competitive compensation packages that can attract and retain talent. The Pension Benefit Guarantee Corporation plays a role in protecting pension benefits, ensuring that employees receive at least some pension benefits if a company faces bankruptcy. This holistic view of compensation encapsulates not just the received salary but the overall monetary and non-monetary returns on an employee's labor.