Introduction to Compensation—Course Outline

Module 1 – Development of the Compensation Philosophy

1. Definition of Total Rewards
2. Specific Elements of Total Rewards
3. Strategic Choices and Perspectives in Total Compensation
4. The Total compensation Philosophy and Strategy
5. Linking Total Compensation to the Business Mission and Strategy
6. Equity Theory
7. The Difference Between Internal Equity and External Competitiveness
8. Key Steps in the Development of the Total Compensation Philosophy and Strategy
9. Tying It All Together

Module 2 – Elements of Compensation – Base Pay and Variable Pay

1. Base Pay Defined
2. Variable Pay Defined
3. Various Forms of Compensation Commonly Provided to Employees
4. Issues to Consider When Designing the Appropriate Use of Base and Variable Pay Based on a Company’s Current Life Cycle, Strategy and Industry Competition
5. How Base and Variable Pay, Designed Appropriately, Can Properly Motivate Employees to Meet Individual and Company Goals

Module 3 – Job Analysis and Documentation

1. The Purpose of Job Analysis and Documentation
2. Critical Issues for the Compensation Professional to Evaluate Prior to Performing Job Analysis
3. The Steps Involved in Performing Job Analysis
4. Job-Based Versus Person-Based Job Analysis
5. What Information to Collect When Performing Job Analysis
6. The Difference Between Conventional and Quantitative Job Analysis
7. How to Summarize Job Data Via the Job Description

Module 4 – Job Evaluation Methods

1. Defining Job Evaluation – Content, Value and Relationships with the External Market
2. Determine the Purpose and Objective of Job Evaluation
3. Choosing Among Job Evaluation Methods
4. Aspects of Job Evaluation
5. Who Should Be Involved in the Design and Administration of Job Evaluation?
6. Balancing Flexibility With Organizational Control
7. The Final Result – The Job Structure

Module 5 – Analyzing Survey Data Using Market Pricing

1. Review of the Compensation Philosophy and Strategy and How It Relates to the Development of a Market Pricing Policy
2. How to Select and Review Various Survey Sources
3. How to Properly Match Jobs with Market Survey Data
4. How to Interpret Market Survey Data
5. Determine the Most Representative Market Data for Jobs Over Time

Module 6 – Developing the Pay Structure

1. Components of a Compensation Strategy that Relate to the Development of the Salary Structure
2. Steps to Developing the Pay Structure
   1. Gather Job Evaluation Results
   2. Group Jobs With Similar Pay and Responsibilities
   3. Determine the Number of Pay Grades
   4. Establish Pay Grade Midpoints
   5. Develop and Calculate Pay Ranges
   6. Pitfalls and Precautions

Module 7 – Salary Administration

1. Salary Administration and Its Relationship to the Total Pay Model
2. Managing Labor Costs
3. Top-Down Versus Bottom-Up Salary Budget Determination
4. Cost Controls Inherent in the Compensation System
5. Communicating Compensation
6. Utilizing Compensation Systems
7. Auditing Pay Programs

Module 8 – Executive Compensation

1. Key Criteria in Developing an Executive Pay Strategy
   1. Key Elements of Executive Pay
   2. Examples of Supplemental Executive Benefits and Perks
   3. How and Why Financial Measurements Are Used in Executive Plans
2. Basic Accounting Rules Affecting Executive Pay
3. Basic Tax Rules Affecting Executive Pay

Module 9 – Course Review

1. Vision, Mission, and Compensation Philosophy Statement
2. Position Analysis Questionnaire
3. Job Evaluation
4. Salary Structure