About This Chapter
Employee Compensation Issues - Chapter Summary and Learning Objectives
Employers have many options when it comes to choosing how to compensate the people who work for them. In this chapter, you will explore methods of payment, employers' considerations when choosing these methods and various benefits that exist in the workforce. This chapter can help you understand the following:
- Types of employee compensation
- Kinds of employee benefits
- Retirement systems
- Incentive programs
- Compensation trends
|Understanding Employee Compensation||Look at what it means to work for pay and how companies compensate their employees.|
|Direct vs. Indirect Compensation||Understand the difference between the two methods of payment and how employers can use each type of compensation.|
|Common Compensation Systems: Salary, hourly, contractor, pay-for-performance||Become familiar with the various ways employers pay employees and why they choose the systems they do.|
|Compensation Equity: Definition and Lesson||Discover what compensation equity is and its importance in the workforce.|
|Mandatory vs. Voluntary Benefits||Learn about the types of benefits and be able to provide examples of each.|
|Retirement Compensation Systems: 401(k) and pensions||Look at common retirement benefits, including defined-contribution and defined-benefit.|
|Incentive Compensation Plans||Learn about incentive compensation plans and the strategies involved in implementing them.|
|Profit sharing, gainsharing, and employee stock ownership||Take a look at common organization-wide incentive programs.|
|Executive Pay - Trends||Discover trends in executive pay in the U.S.|
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.
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Other chapters within the Business 106: Human Resource Management course
- Overview of HRM Field
- Organizational Theories & Human Resources
- Job Analysis and Design
- Staffing in Organizations
- Training and Development in Organizations
- Performance Appraisals
- Employment Law & Employee Rights
- Labor Relations
- International Human Resource Management
- Current Issues and Trends in HRM
- Studying for Business 106