Elements of a Total Compensation Plan

A total compensation plan may contain more pay elements than just a base pay, as shown by Mercer 3P concept, Mercer compensation elements and the types of incentive schemes shown below.

Salary Formula 13A

Diagram: Mercer 3P Concept

Source: Mercer IPE Methodology

Salary Formula 13B

Diagram: Mercer Compensation Elements

Source: Mercer IPE Methodology

Salary Formula 13C

Diagram: Type of Incentive Schemes

Source: Textbook for Human Resource Practitioners written by MA Pieters published by Kagiso Tertiary

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