The four tiers in compensation design typically refer to the different levels of an employee's compensation package. These tiers can vary depending on the organization, but they generally include: 1. Base Compensation: This is the fixed pay an employee receives, usually as a salary or hourly wage. It's determined by the role, responsibilities, and market value of the position. 2. Variable Compensation: This includes any additional pay based on performance or results, such as bonuses, commissions, or profit sharing. It's designed to incentivize and reward high performance. 3. Benefits: These are non-cash compensation provided to employees, such as health insurance, retirement plans, paid time off, etc. They are often used to attract and retain employees. 4. Long-term Incentives: These are rewards given to employees for long-term performance and commitment to the company. They often come in the form of stock options, deferred compensation, or pension plans. Each tier is designed with a specific purpose in mind, and together they form a comprehensive compensation package that can attract, motivate, and retain employees