By Audra H. Nelson, M.S.

This learning module examines compensation (e.g., base and variable pay, benefits) and non-compensation elements (e.g., job satisfaction, growth opportunities and relationships with other people) that comprise an organization’s total rewards system. The module also provides an overview of the considerations necessary to develop a compensation system that is internally and externally equitable and fiscally responsible, including the use of salary surveys and job evaluation. Just as important as the development of sound compensation systems is the ability to communicate the components of the total rewards system to prospective and existing employees. As such, class projects for this module focus on applicant and employee communications. Finally, because U.S.-based compensation systems are governed by a number of federal laws (e.g., Fair Labor Standards Act, Equal Pay Act, IRS regulations), this module explains the relevance of those laws to compensation systems. This module pertains specifically to U.S. employment law relevant to compensation and benefits systems without consideration of international employment law. 

This learning module was designed for an undergraduate audience in an entry-level introduction to human resource management course. 

Click here to download the instructor’s manual. For the PowerPoint presentation, click here.