About This Chapter
Employee Compensation & Incentives - Chapter Summary
The video lessons in this chapter on employee compensation and incentives prove that learning can be easy and entertaining. An expert will teach you about piece rates, merit pay, commissions, and other incentive compensation plans. You can also get clarity on retirement compensation systems. After completing the chapter, you should be able to:
- Explain indirect and non-financial compensation strategies
- Describe salary and pay-for-performance compensation systems
- Outline the importance of compensation equity
- Distinguish between mandatory and voluntary benefits
- Provide an overview of incentive compensation plans
- Discuss 401(k) and pension plans
- Recall examples of organizational incentive programs
- Detail executive compensation trends in the United States
You'll enjoy this chapter on employee compensation and incentives because the lessons are concise and our instructors facilitate an engaging learning experience. For a strategic approach to studying, you can focus only on the lessons that you need to review most. Among the many helpful features is a short quiz to gauge your understanding of the topics covered.
1. Understanding Employee Compensation
Compensation is pay for services during the course of employment. This can be direct (or monetary) compensation and indirect (or non-monetary) compensation in the form of benefits provided to the employee.
2. Direct, Indirect & Non-Financial Compensation Strategies
Most organizations can't get people to work for free. In this lesson, you'll learn how businesses and other organizations can use direct, indirect and non-financial compensation strategies to acquire and keep talent. A short quiz follows.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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.
9. Trends of Executive Compensation in the U.S.
Some believe executive compensation in the U.S. has gotten out of hand. In this lesson, we'll discuss how executives are compensated, how their compensation is determined and recent trends in executive compensation.
Earning College Credit
Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.
To learn more, visit our Earning Credit Page
Transferring credit to the school of your choice
Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.
Other chapters within the DSST Human Resource Management: Study Guide & Test Prep course
- Introduction to Human Resource Management
- Organizational Theories for Human Resources
- Job Design & Performance Metrics
- Organizational Staffing
- Employee Training & Career Development
- Performance Appraisal in Business Management
- Employee Rights & Insurance
- Employment Law for Human Resources
- Understanding Labor Relations
- Workforce Diversity & Inclusion
- Organizational Strategy for Human Resources
- Current Issues & Trends in Human Resource Management
- DSST Informational Resources
- DSST Human Resource Management Flashcards