Building Blocks and Structure of Strategic Compensation Systems
4 Identify and discuss the building blocks and structural elements of strategic compensation systems.
As we discussed previously, extrinsic compensation includes both monetary (core compensation) and nonmonetary rewards (employee benefits). Figure 1-2 lists the main compensation building blocks. The building blocks are embedded within a system of three structural elements that ultimately support compensation strategies. These structural elements include internally consistent job structures, market competitive pay structures, and structures that recognize employee contributions.
Figure 1-2
Compensation System Building Blocks
Building Blocks: Core ...
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