Total Compensation and Rewards Systems Study Guide
Explore the intricacies of total compensation, encompassing direct and indirect rewards, and understand the critical role of organizational culture, pay equity, market strategies, and external economic and political factors in shaping effective compensation systems. Learn about implementation processes and communication strategies for employee buy-in.
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Designing and Managing Compensation Systems
Creation and Management of Pay Grades
This topic covers the creation of pay grades, job analysis, and compensation strategies used to establish market value and pay structures.
- Pay grades
- Total rewards strategy
- Market value
- Salary surveys
- Job analysis
- Compensable factors
- Job evaluation
- Exempt and non-exempt
- Job families
- Pay structure
- Compensation strategies
- Performance differentiation
- Egalitarian
- Mission-based
- Unstructured
- Compa-ratio
- Broadbanding
- Multivariate regression analysis
Bonus Pay and Performance Variable Pay
Variable pay and incentive bonuses are used to motivate employees through performance ratings, profit sharing, and executive compensation.
- Variable pay
- Individual incentive bonuses
- Spot bonuses
- Retention bonus
- Market premium bonus
- Hiring bonus
- Employee Referral
- Organization wide bonus
- Team Incentives
- Profit sharing
- Pay Increases
- Seniority
- Performance bonus
- Incentive pay
- Executive Pay
- Stock options
- Performance grants
- Restricted stock grants
- Lump-sum increases
- Merit pay increases
Job Analysis and Job Worth
Review the worth of a job using universal compensable factors such as skill, effort, responsibility, and working conditions.
- Universal Compensable Factors
- Skill
- Effort
- Responsibility
- Working Conditions
- Job Evaluation Form
- Regression Line
- Market Line
Job Analysis and Compensation: Determining Fair Pay
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Total Compensation System and Organizational Culture
Organizational culture and economic factors influence how people perceive the value of various rewards available in the compensation system.
- Organizational culture
- Performance-driven culture
- Entitlement-oriented culture
- Uncertainty avoidance
- Labor costs
- Pay equity
- Internal equity
- External equity
- Pay strategies
- Lag market competition
- Match market competition
- Lead market competition
- PEST factors
- Employee Life Cycle
- Total rewards strategy
- Communication of total rewards
Understanding Total Compensation and Organizational Culture
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Strategic Compensation and Total Rewards Systems
Employee Pay Grades and Market Benchmarks
This content covers employee placement in pay ranges, compa-ratio calculations, and applying market benchmarks to organizational compensation structures.
- Range Minimum
- Range Midpoint
- Range Maximum
- Compa-ratio
- Market Median
- Market 75th Percentile
- Employee Incentive Plans
- Internal Value
- External Value
- Performance Evaluation
- Variable Pay
- Merit Pay
Strategic Rewards Management Course Overview
This class provides knowledge and skills in compensation and benefits to analyze jobs, pay systems, and total rewards packages.
- compensation and benefits
- job analysis
- job evaluation
- pay structure
- total rewards package
- wellness programs
- retirement plans
- salary setting
- pay grades
- health care costs
- well-being packages
- bonus and variable pay
- legal and regulatory environment
Designing Compensation Systems and Pay Structures
Designing a compensation system involves job analysis, job evaluation, and establishing pay structures through base pay systems, differential pay, and person-based pay.
- Job analysis
- Job evaluation
- Pay structure
- Base pay systems
- Hourly wage
- Salary
- Time based step-rate system
- Performance-based merit pay system
- Productivity based system
- Straight piece rate system
- Differential piece rate system
- Person based pay
- Knowledge based pay
- Skill-based pay
- Competency-based systems
- Differential pay
- Shift pay
- Premium pay
- Overtime pay
Total Compensation and Rewards Systems
Total rewards include all forms of financial returns consisting of direct compensation pay systems and indirect compensation benefit programs.
- Direct compensation
- Indirect compensation
- Base pay
- Short-term incentive pay
- Long-term incentive pay
- Benefit programs
- Total rewards strategy
- Assessment
- Design
- Implementation
- Evaluation
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