After you have read this chapter, you should be able to
- Understand the importance of compensation to strategic human resources management
- Understand basic theories underlying pay systems
- Explain external, internal, and employee equity
- Understand the role that labor markets play in determining compensation
- Explain how to determine the relevant labor market for a specific job
- Discuss what compensable factors are and how they relate to job evaluation
The design, implementation, and maintenance of compensation systems are important parts of strategic human resources management (SHRM). Decisions about salaries, incentives, benefits, and quality-of-life issues are important in attracting, retaining, and motivating employees. ...