Compensation and Salary Structures Course

Lesson 1 • Defining Compensation and Its Components

Breaks down total compensation into direct and indirect elements. Provides the definitional baseline needed for every subsequent chapter.

Lesson 2 • Regulatory and Ethical Foundations

Introduces compliance obligations and ethical principles governing pay. Establishes the boundaries within which all compensation design must operate.

Lesson 3 • Key Stakeholders in Compensation Design

Identifies who influences and is affected by compensation decisions. Clarifies roles of HR, finance, leadership, and employees.

Lesson 1 • Job Analysis Methods and Tools

Covers interviews, questionnaires, observation, and hybrid approaches. Students select appropriate methods based on role type and organizational context.

Lesson 2 • Writing Effective Job Descriptions

Teaches components and language standards for compensation-ready job descriptions. Accurate descriptions directly enable job evaluation and market pricing.

Lesson 3 • Job Families and Career Architecture

Groups related roles into families and levels to support structured pay progression. Provides the organizational map used in grade and band design.

Lesson 1 • Point-Factor Evaluation Systems

Teaches the most widely used quantitative job evaluation method. Students assign compensable factors, weights, and points to produce numeric job values.

Lesson 2 • Principles of Internal Equity

Defines internal equity and its impact on employee fairness perceptions. Establishes why consistent job valuation is essential before setting pay rates.

Lesson 3 • Building and Maintaining Job Hierarchies

Converts evaluation scores into a ranked job hierarchy ready for grade design. Covers governance processes to keep hierarchies current.

Lesson 4 • Ranking and Classification Methods

Covers whole-job ranking and grade classification as foundational evaluation techniques. Suitable for smaller organizations or initial structure-building.

Lesson 1 • Matching Jobs to Survey Data

Teaches job matching techniques to align internal roles with survey benchmarks. Accurate matching is the critical step before any data analysis.

Lesson 2 • Analyzing and Aging Survey Data

Covers statistical measures, percentile selection, and data aging techniques. Produces current, reliable market reference points for pay decisions.

Lesson 3 • Setting Pay Positioning Strategy

Translates market data into a deliberate pay positioning decision relative to competitors. Connects external data to the organization's total rewards philosophy.

Lesson 4 • Defining the Competitive Market

Guides selection of the relevant labor market for each role or job family. Market definition directly determines the pay targets used in range construction.

Lesson 1 • Broadbanding and Alternative Structures

Examines broadband, career band, and step-rate structures as alternatives to traditional grades. Evaluates fit with different organizational models.

Lesson 2 • Constructing Pay Grades and Ranges

Walks through the quantitative steps to set midpoints, minimums, and maximums. Students apply range spread and midpoint progression formulas.

Lesson 3 • Testing and Validating the Structure

Runs the current workforce through the new structure to identify outliers and cost impacts. Validates structural integrity before implementation.

Lesson 4 • Integrating Market Data into Structures

Anchors structure midpoints to market survey data using regression and scatter plots. Ensures the structure reflects both internal equity and external competitiveness.

Lesson 1 • Long-Term Incentive Plan Design

Introduces equity and cash-based long-term incentives used to retain and motivate key talent. Covers vesting schedules, grant types, and eligibility.

Lesson 2 • Principles of Variable Pay Design

Establishes the behavioral and financial logic behind incentive compensation. Distinguishes variable pay from base pay and explains when each is appropriate.

Lesson 3 • Sales Compensation and Commission Plans

Addresses the unique design requirements of sales incentive plans. Covers quota setting, commission rates, and accelerators for sales roles.

Lesson 4 • Evaluating and Auditing Incentive Plans

Provides tools to assess whether incentive plans are achieving intended outcomes. Identifies unintended behaviors and cost overruns before they escalate.

Lesson 1 • Statistical Methods for Pay Equity

Applies regression analysis and cohort comparisons to isolate unexplained pay differences. Students interpret outputs and assess statistical significance.

Lesson 2 • Sustaining Pay Equity Over Time

Embeds equity checkpoints into ongoing compensation processes. Prevents new disparities from emerging through structural and process controls.

Lesson 3 • Pay Equity Concepts and Frameworks

Defines equal pay, pay equity, and pay gap as distinct concepts. Establishes the analytical and legal framework for equity work.

Lesson 4 • Preparing Data for Equity Analysis

Covers data collection, cleaning, and variable selection for a statistically valid equity study. Data quality determines the reliability of all downstream findings.

Lesson 1 • Crafting a Compensation Philosophy

Guides creation of a written pay philosophy that reflects organizational values and strategy. The philosophy anchors all subsequent compensation decisions.

Lesson 2 • Annual Compensation Review Process

Maps the end-to-end merit and market review cycle from budget to employee communication. Students manage each stage with defined inputs and outputs.

Lesson 3 • Compensation Governance Structures

Defines decision rights, approval authorities, and oversight bodies for compensation. Clear governance prevents inconsistency and reduces legal exposure.

Lesson 4 • Evaluating and Evolving the Strategy

Applies a structured review process to assess whether the compensation strategy is delivering results. Drives continuous improvement in pay program design.