MHR 523 - 8 - Compensation and Benefits - Students

Compensation Management

The process of managing employee compensation, including salary, benefits, and incentives.

Internal Equity

Perceived equity of a pay system within an organization.

External Equity

Perceived fairness of pay compared to what other employers pay for similar jobs.

Pay Equity Challenges

Issues that arise when ensuring fair pay among employees and across organizations.

Job Ranking

A method where jobs are subjectively ranked in order of importance relative to one another.

Job Grading

Grouping jobs into categories that describe their relative worth within an organization.

Point System

A job evaluation system that assesses the relative importance of a job's key factors.

Pay for Performance

Incentive pay directly tied to an employee's performance or productivity.

Individual Incentive Plans

Compensation plans that reward individual performance, such as piecework.

Team Incentives

Compensation plans that reward group performance and encourage cooperation.

Total Rewards

The complete package of compensation, benefits, and other perks offered to employees.

Legally Required Benefits

Benefits mandated by law, such as pension plans and workers' compensation.

Voluntary Benefits

Additional benefits offered by employers, such as health insurance and paid time off.

Benefits Management

Administration and planning of employee benefits to attract and retain talent.

Equity in Pay

The principle that employees should receive equal pay for equal work or work of equal value.

Ethics in Compensation

The moral principles that govern how compensation is administered and perceived in the workplace.