Types of Compensation

This activity is important because how much employees are paid for their work is a complicated issue. Also, designing a fair

compensation plan is an important task because pay and benefits represent a substantial portion of an organization's expenses.

Wages that are too high may result in the company's products being priced too high, making them uncompetitive in the market. Wages

that are too low may damage employee morale and result in costly turnover.

The goal of this activity is to demonstrate your understanding of the different types of compensation and how that compensation is

determined.

Roll over each term on the left and read each statement when it appears and place it in the correct box in the chart

on the right.