Lesson Overview

As a generic term, “compensation” encompasses the value of all monetary rewards whether reflected in a pay check or other forms (e.g., the value of health insurance; paid vacations). The previous two lessons focused on determining the size of a person’s paycheck. This lesson addresses the additional forms of compensation that are either required by law or provided as incentives voluntarily by employers. (In unionized settings, not discussed in this lesson, benefits are negotiated jointly by labor and management.)

Lesson Objectives

Upon successful completion of this lesson, you should be able to

• identify benefits required by law;
• identify discretionary benefits commonly provided by employers;
• identify what are commonly described as “family friendly benefits";
• analyze the manner in which benefit packages affect employees’ decisions to join and/or remain with an organization; and, 
• explain the manner in which a benefit package can support an organization’s strategic objectives.

Lesson Readings & Activities

By the end of this lesson, make sure you have completed the readings and activities found in the Lesson 11 Course Schedule.