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Compensation: A Balanced Approach covers compensation systems and practices through theory and application. Each chapter looks at compensation from both the employer and employee perspective, giving students a more holistic understanding of the role total rewards play in an organization.
Contents
Preface
Acknowledgements
About the Authors
1. Total Compensation
Nature Of The Employment Relationship
Perspectives On The Importance Of Compensation
From Total Compensation To Total Rewards
Worldatwork Total Rewards Model
The Unintended Consequences Of Pay
Ongoing Challenges: Pay Equity
Overview Of The Book
Summary
Key Terms
Discussion Questions
2. Laws Affecting Compensation
Fair Labor Standards Act
Prevailing Wage Laws
Anti-Discrimination Laws
Legal Compliance
Summary
Key Terms
Discussion Questions
3. Compensation Strategy and Objectives
Shifting Focus From Shareholders To Stakeholders
Types And Levels Of Strategies
Using Compensation Strategically
Compensation Objectives
Influences On Compensation Strategy
The Impact Of Compensation Strategy On Behavior
Matching Compensation Strategy To The Organization's Business Strategy
Compensation As A Competitive Advantage
Summary
Key Terms
Discussion Questions
4. Bases of Pay, Variations, and Differentials
Pay Structures: Defining The Value Of Jobs
Human Capital Theory: Determining The Value Of Employees
Job-Based Pay
Person-Based Pay
Variations On Job- And Person-Based Pay
Compensating Differentials
Efficiency Wage Theory
Sorting And Motivational Effects Of Differentials And Bases Of Pay
Reservation Wage
Summary
Key Terms
Discussion Questions
5. Establishing an Internally Equitable Compensation System
Internal Equity
Job Analysis
Competency Modeling: An Alternative to Traditional Job Analysis
Job Evaluation: Determining The Relative Value Of Jobs Within An Organization
Alternatives To Job Evaluation
The Role Of Ai In Creating An Internally Equitable Compensation System
Market Pricing
Summary
Key Terms
Discussion Questions
6. External Equity And Designing A Market-Competitive Pay Structure
Creating A Market-Competitive Pay Structure
Analyzing External And Internal Factors Influencing A Market-Competitive Pay Structure
Determining The Competitive Pay Policy
Collecting Market Data
Integrating The Internal Job Structure With The External Market Data
Establishing Pay Grades And Pay Ranges
Multiple Salary Structures
Market-Based Pay Structure: An Alternative To A Market-Competitive Pay Structure
Summary
Key Terms
Discussion Questions
7. Rewarding Individual Performance
Motivating Employees Through Incentives
Measuring Performance
Performance Appraisal Methods
Merit Pay
Bonuses
Commission
Piecework
Standard Hour Plans
Summary
Key Terms
Discussion Questions
8. Rewarding Group Performance
Types Of Groups
Measuring Group Performance
Challenges In Rewarding Group Performance
Types Of Rewards
Gainsharing Plans
Profit Sharing
Incentive Stock Options
Employee Stock Ownership Plans
Nonfinancial Group Incentives
Summary
Key Terms
Discussion Questions
9. Legally Required Benefits
Legally Required Employee Benefits
Social Security
Unemployment Compensation
Workers' Compensation
Family And Medical Leave Act (FMLA)
Uniformed Services Employment And Reemployment Rights Act (USERRA)
Patient Protection And Affordable Care Act (ACA)
Additional Legal Requirements
Summary
Key Terms
Discussion Questions
10. Voluntary Benefits
Legal Requirements
Employer-Sponsored Retirement Plans
Health Insurance Alternatives
Paid Time Off
Other Miscellaneous Benefits
The Importance Of A Needs Assessment
Flexible Benefits/Cafeteria Plans
Managing The System
Summary
Key Terms
Discussion Questions
11. Compensation of Special Groups
Sales
Supervisors
Contingent Workers
Directors
Executives
Unionized Workers
Two-Tier Pay Plans
Part-Time
Summary
Key Terms
Discussion Questions
12. International Compensation
Data Sources
National Differences And Requirements
Categories Of International Workers
Expatriate Pay And Benefits
Cost Containment
Repatriation
International Assignments: Pros And Cons
Summary
Key Terms
Discussion Questions
13. Compensation System Administration
Managing Compensation Communication
Pay Transparency
Addressing Employee Fairness Concerns
Managing Compensation Costs
Evaluating Effectiveness: Audits, Metrics, And Employee Feedback
From Metrics to Analytics
Managing Change
Summary
Key Terms
Discussion Questions
14. Compensation in Context: Putting It All Together
Putting The Pieces Together
Careers In Compensation
The Future Of Compensation
Work-Life Balance
Making It Personal
Summary
Key Terms
Discussion Questions
Appendix: Responsible Furniture Industries, Inc. (RFI)
