Voluntary benefits are employee benefits paid for by the employee rather than the employer, although the employer will pay for the administration of the scheme. The money is often deducted from the employee’s salary for the sake of simplicity, although it isn’t always. Voluntary benefits are often provided by a third-party benefits provider. Voluntary benefits allow employers to provide a greater package of options to employees but without the cost associated with providing paid-for benefits.

Virtual HR refers to the process of providing a range of options through the use of various types of technology to employees in order to connect them with HR services. It is managed through self-service platforms where employees can put data directly into them and skip the process of going to a third party for that action. Virtual HR is practiced due to its cost reduction impact, to gain competitive advantage and to share risks with an outsourced organization. Virtual HR functions include virtual recruiting, training and on-boarding.

Variable pay is the portion of sales compensation determined by employee performance. When employees hit their goals, variable pay is provided as a type of bonus, incentive pay, or commission. Base salary, on the other hand, is fixed and paid out regardless of employees meeting their goals. Together, variable pay and the base salary make up what is known as pay mix.

According to the U.S. Office of Personnel Management, employers typically pay employees variable pay for success related to personal, team, or company performance. Successful organizations establish a clear business plan and key performance indicators that reflect the metrics that matter most to the company. Variable compensation can be communicated in advance as an incentive, or presented as a reinforcement or bonus after the fact. Most employers compensate employees with variable pay in the form of cash, stock, or paid time off from work.