37:533:301 Study Guide - Final Guide: Copayment, Health Savings Account, Prescription Drug

• School: Rutgers University
• Department: Human Resource Management
• Course: 37:533:301
• Professor: Hadi El Farr

Document Summary

Purpose of compensation: goal of strategic compensation system. Motivate individual performance and contributions to goals. Make employee engagement and productive work relationships. Total compensation: compensation : rewards employees get, direct financial compensation: salary, hourly wages, commission, etc , indirect financial compensation: benefits and services (free meals, vacation time, health insurance, training, etc, total rewards: all compensation direct and indirect. Reminds employees that they are getting paid and more: compensation philosophy. Explains why employees are paid the way they are. Equity theory: employees compare their input (work effort) and outcomes (wages) with. Internal : how is their pay compared to those in the organization other people in similar situations to see if they are being treated the same. Employee: how is their pay between other employees doing similar jobs. External: how is their pay compared to other employers in other. Comparable worth: equal difficulty requirements, pay should be the same.