Lesson 1 Wrap-Up

In this lesson, you learned the concepts of compensation and strategic compensation, followed by the building blocks and structural elements of compensation systems. With this knowledge, you developed an understanding of the fit of the compensation function within a company’s structure. You also considered the many stakeholders and interests they expect to promote through the effective design and implementation of compensation systems. For example, employees expect fair and equitable pay for the work they perform. In Lesson 2, you will become familiar with the external context (e.g., government regulation) that influences the design and implementation of compensation systems.