Lesson 9: Compensation
1. Total Compensation and the Environment of Compensation
Practice
total compensation
-both the intrinsic and extrinsic rewards employees receive for performing their jobs
components of a total compensation program
-job structures
-competitive compensation policies
-pay structures
direct and indirect financial compensation
direct financial compensation (monetary compensation)
-the pay that the person receives -> wages, salaries, commissions, bonuses
indirect financial compensation (employee benefits)
-extrinsic compensation other than hourly wages or annual salary
nonfinancial compensation
-derives from within an employee’s self
-satisfaction that a person receives from the job itself or from the psychological
and/or physiological environment in which the person works
structure of direct financial compensation plans
job structures
-job analysis
-job description
-job evaluation
competitive compensation policies
-pay level
-pay mix
pay structures
-job pricing
-pay range
-pay grades
Lesson 9 1/9
1. Total Compensation and the Environment of Compensation
Practice
total compensation
-both the intrinsic and extrinsic rewards employees receive for performing their jobs
components of a total compensation program
-job structures
-competitive compensation policies
-pay structures
direct and indirect financial compensation
direct financial compensation (monetary compensation)
-the pay that the person receives -> wages, salaries, commissions, bonuses
indirect financial compensation (employee benefits)
-extrinsic compensation other than hourly wages or annual salary
nonfinancial compensation
-derives from within an employee’s self
-satisfaction that a person receives from the job itself or from the psychological
and/or physiological environment in which the person works
structure of direct financial compensation plans
job structures
-job analysis
-job description
-job evaluation
competitive compensation policies
-pay level
-pay mix
pay structures
-job pricing
-pay range
-pay grades
Lesson 9 1/9
