Summary - Compensation Systems
Recap
In this module, we defined a compensation system as the sum total of all monetary and non-monetary benefits provided to employees in exchange for their work and we looked at the distinctions of direct and indirect financial compensation systems and how each used to attract and retain employees.
Resources
SHRM: Building a Market-Based Pay Structure from Scratch
This article, primarily for the benefit of HR professionals who are not compensation specialists, discusses the steps involved in developing and implementing a market-based pay structure. It refers to but does not include a detailed discussion of job evaluation or of other internally focused methods of setting base pay. It also does not include executive compensation practices.
Extended learning
For more information on this topic and any other HR-related topics, it is suggested you contact:
SHRM Links to an external site. (Society of Human Resources Management)
Cal Chamber Links to an external site.
Next Concept HR Links to an external site. (formerly the Northern California Human Resources Association)
These are member-based organizations and most offer student memberships.
Gregg Learning Links to an external site. (powered by LighthouseOD Links to an external site.) continually updates its video library with relevant content designed to enhance HR professional development.
Looking Ahead
In the next module, we will apply what you have learned about compensation plans and convert that knowledge into understanding how to build a package that outlines your employees' wages, salaries, benefits, and terms of payment.