About This Chapter
Compensation Systems, Benefits & Incentive Programs - Chapter Summary
If you're interested in strengthening your knowledge of incentive programs, benefits and compensation systems, this chapter can help! Fun lessons closely examine these components of human resources by diving into topics that include incentive compensation plans, disability insurance and organizational incentive programs. Upon completion of this chapter, you will be able to:
- Provide details about hourly, contractor and other common compensation systems
- Define compensation equity and HR compensation and benefits
- Differentiate between mandatory and voluntary benefits
- List and describe types of insurance and flexible benefits for employees
- Discuss retirement compensation systems, incentive compensation plans and organizational incentive programs
- Explain the importance of ERISA and COBRA
- Describe workers compensation and long-term and short-term disability insurance
- Detail the common practices of organizations that promote a work-life balance
Feel free to review the lessons in any sequence that suits your current and desired knowledge of concepts covered in this chapter. If you need additional details about incentive programs, benefits and compensation systems, be sure to submit questions to our experts using the Dashboard. At any time, assess your knowledge by taking multiple-choice lesson quizzes. A practice chapter exam is also available to ensure you understand lesson concepts.
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. Wage and Hour Laws: Overview of the Fair Labor Standards Act
Most people work for others to make a living by trading their labor for a wage and other benefits. In this lesson, you'll learn about the Fair Labor Standards Act and the minimum standards it sets for certain labor practices.
3. 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.
4. 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.
5. Insurance & Flexible Benefits for Employees
Employee benefits, such as insurance and flexible spending accounts, offer a valuable incentive for employees to join and stay with a company. In this lesson, we'll explore a few common types of benefits and how they work.
6. Affordable Health Care Act: Description, Overview & Relevance to HR Management
One of the newest federal laws facing employers today is the Affordable Care Act. In this lesson, you'll be provided an overview of the Affordable Care Act and its relevance to human resource management. A short quiz follows.
7. 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.
8. 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.
9. 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.
10. HR Compensation & Benefits: Definition & Policies
Employee compensation and benefit opportunities should be communicated through company policies. These policies define compensation for financial and non-monetary benefits, identify the value for the employee, and comply with legal requirements.
11. ERISA Law: Explanation & Importance
In the U.S., individuals are primarily responsible for saving for retirement. A pivotal vehicle is employer-sponsored retirement plans. In this lesson, you'll learn about ERISA, which is an important law that regulates private sector benefit plans.
12. COBRA: Overview and Importance
Health insurance is one of the most important benefits an employee receives. In this lesson, you'll learn how COBRA allows an employee to keep his insurance coverage after he has left employment. A short quiz follows.
13. Workers' Compensation: Overview and Description
Sometimes, work can be a dangerous proposition and accidents happen even in the safest of jobs. The workers' compensation system is designed to address these situations. In this lesson, you'll learn about some key aspects of the system.
14. Long-Term & Short-Term Disability Insurance
Have you ever wondered how people are able to pay their bills if they suddenly cannot work due to illness or injury? In this lesson, we'll define long-term and short-term disability. You'll also learn about the activities of daily living and Social Security benefits.
15. How Organizations Promote Work-Life Balance: Definition and Common Practices
The overall trend in organizations to keep employee turnover rates down is to offer significant programs that provide a work-life balance. A work-life balance is an organizational concept that empowers employees to split time and energy between work and other important areas of their life successfully.
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Other chapters within the aPHR Certification Exam Study Guide - Associate Professional in Human Resources course
- Human Resource Operations
- Human Resource Metrics
- HR Data Tools & Collection
- Business Records Management
- Technology & Information Systems for Human Resources
- Job Design & Performance Metrics
- Workplace Organizational Structure
- Functions & Types of Business Management
- Workplace Communication Techniques
- Hiring, Recruiting & Outsourcing for Human Resources
- Role of HR in Employee Training & Development
- Performance Appraisal in Business Management
- Employee Relations & Recognition Programs
- Employee Feedback
- Overview of Employee Rights & Employment Law
- Employee Behavior in the Workplace
- Employee Discipline & Termination
- Employee Health, Safety & Security
- aPHR Certification Exam Study Guide - Associate Professional in Human Resources Flashcards