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Ch 4: Compensation Methods

About This Chapter

Any employee is going to be concerned about how and when they get paid. In this chapter, you will learn about the various methods of compensation in the workplace and how HR oversees them.

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

VideoObjective
Common Compensation Systems: Salary, Hourly, Contractor, Pay-For-PerformanceList the different methods of compensation and when they should be used.
Compensation Equity: Definition & ImportanceExplain why equity matters.
Mandatory vs. Voluntary Benefits: Definition & ExamplesDiscuss common benefits packages.
Retirement Compensation Systems: 401(k) and PensionsLearn how retirement packages are funded.
Incentive Compensation Plans: Merit Pay, Piece Rates, Commissions, Bonuses & Skills-BasedVisualize how to motivate employees with compensation offers.
Organizational Incentive Programs: Profit Sharing, Gain Sharing, and Employee Stock OwnershipDetail how companies offer ownership.

6 Lessons in Chapter 4: Compensation Methods
Test your knowledge with a 30-question chapter practice test
Common Compensation Systems: Salary, Hourly, Contractor, Pay-For-Performance

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.

Compensation Equity: Definition & Importance

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.

Mandatory vs. Voluntary Benefits: Definition & Examples

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.

Retirement Compensation Systems: 401(k) and Pensions

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.

Incentive Compensation Plans: Merit Pay, Piece Rates, Commissions, Bonuses & Skills-Based

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.

Organizational Incentive Programs: Profit Sharing, Gain Sharing, and Employee Stock Ownership

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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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