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Ch 7: Employee Compensation & Incentives

About This Chapter

Take your knowledge of employee compensation and incentives to the next level with lessons on voluntary benefits, merit pay, profit sharing, and much more. These short video lessons are beneficial when preparing for a test, catching up on missed class time, or completing a homework assignment.

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.

9 Lessons in Chapter 7: Employee Compensation & Incentives
Test your knowledge with a 30-question chapter practice test
Understanding Employee Compensation

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.

Direct, Indirect & Non-Financial Compensation Strategies

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.

Common Compensation Systems: Salary, Hourly, Contractor, Pay-For-Performance

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.

Compensation Equity: Definition & Importance

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.

Mandatory vs. Voluntary Benefits: Definition & Examples

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.

Retirement Compensation Systems: 401(k) and Pensions

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.

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

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.

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

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.

Trends of Executive Compensation in the U.S.

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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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