Title: Lecture Materials: (CU2 M3) Compensation of Human Capital
Course: SkillsCom BA 224 15.1 > Section: Credit Unit 2 Module 3

Before you begin this topic, take some time to play this brief game. Click the link below to access instructions on how to play and develop a better understanding of the comfort of compensation.

The Comfort of Compensation (PDF)

Additional Information to Review:

- The factors that determine the design of any pay plan include legal, union, company strategy and policy, and equity. A firm's vision indicates what the firm wants to become in the future, and it has less of an impact on pay plan design than the other factors.
- Earning sales commissions, means receiving performance-based compensation.
- Employee compensation has two main components: direct financial payments (wages, salaries, incentives, commissions, and bonuses) and indirect financial payments (financial benefits like employer-paid insurance and vacations).
- Employee compensation refers to all forms of pay going to employees and arising from their employment. It has two main components, direct financial payments (wages, salaries, incentives, commissions, and bonuses) and indirect financial payments (financial benefits like employer-paid insurance and vacations).