Employee Compensation

Compensation is the financial and non-financial rewards that a company gives their employees in exchange for their work, and it is based on three types of compensation decisions: pay level, pay variability, and pay structure. Pay-level decisions are based on if workers are paid below, at, or above the market average. Pay variability refers to the extent to which a company pays individuals differently. Pay structure is related to the internal pay distributions within a company. How well (or poorly) a manager compensates their workers has a big impact on if someone will go to work at a company, and whether or not they'll stay long-term. This course discusses how organizations and managers make decisions regarding worker compensation.