About This Chapter
Compensation Methods - Chapter Summary and Learning Objectives
Compensation does not exist just in the form of a paycheck every two weeks. While an employee expects to be fairly paid for their time and service, a human resources manager has a lot more to monitor than just time worked on the clock. Benefits packages can vary from employer to employer. Private companies may offer profit-sharing packages. The video lessons contained in this chapter will introduce you to the world of compensation in the workplace, including:
- What the differences between hourly, salary and contract payments are
- What benefits packages exist
- How pensions and 401(k)s work
- How to motivate employees with incentives
- What options are available for profit sharing
|Common Compensation Systems: Salary, Hourly, Contractor, Pay-For-Performance||List the different methods of compensation and when they should be used.|
|Compensation Equity: Definition & Importance||Explain why equity matters.|
|Mandatory vs. Voluntary Benefits: Definition & Examples||Discuss common benefits packages.|
|Retirement Compensation Systems: 401(k) and Pensions||Learn how retirement packages are funded.|
|Incentive Compensation Plans: Merit Pay, Piece Rates, Commissions, Bonuses & Skills-Based||Visualize how to motivate employees with compensation offers.|
|Organizational Incentive Programs: Profit Sharing, Gain Sharing, and Employee Stock Ownership||Detail how companies offer ownership.|
1. Common Compensation Systems: Salary, Hourly, Contractor, Pay-For-Performance
One of the core functions of human resource management is the development of a compensation system. In this lesson, you'll learn about the different methods organizations use to compensate their employees. A short quiz follows.
2. Compensation Equity: Definition & Importance
Employees want to be treated fairly by employers. This is especially true in the area of compensation. In this lesson, you'll learn about the concept of compensation equity, including internal equity, external equity and why compensation equity is important.
3. Mandatory vs. Voluntary Benefits: Definition & Examples
A key component of any organization's compensation system is the benefits provided to employees. In this lesson, you'll learn about the difference between mandatory benefits and voluntary benefits. A short quiz follows the lesson.
4. Retirement Compensation Systems: 401(k) and Pensions
One of the most valuable benefits an employer may offer to employees are employer-sponsored retirement plans. In this lesson, you'll learn about two common retirement benefits: 401(k) plans and traditional pensions. A short quiz follows.
5. Incentive Compensation Plans: Merit Pay, Piece Rates, Commissions, Bonuses & Skills-Based
An important role of human resource management is to develop a compensation system to encourage productivity. In this lesson, you'll learn about merit pay, piece rate pay, commissions, bonuses and skills-based pay and how they help achieve this goal.
6. Organizational Incentive Programs: Profit Sharing, Gain Sharing, and Employee Stock Ownership
One way to tie a company's success to employee success is to utilize incentive programs where employees profit when the company does. In this lesson, you'll learn about profit sharing, gain sharing and employee stock ownership.
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Other chapters within the Human Resources 101: Intro to Human Resources course