Compensation grids and structures: The basics

- [Instructor] If your organization is large enough, … it will have a compensation manager, … or perhaps a compensation and benefits manager. … In smaller organizations, … compensation management is done … by the Director of Human Resources … or someone they simply assign. … Compensation management is about setting up systems … for how people get compensated, … so every single new hire … doesn't create a new conversation … about how we should compensate people. … There are different ways that we can do compensation. … Our sample organization uses three built in ways … to do compensation. … On the summary page here you'll notice … that we have nine fixed compensation plans … and three variable compensation plans. … Fixed compensation plans are used … for compensating both hourly and salaried employees. … Variable compensation plans are used … for things that aren't typically salary … or aren't typically part of what you are paid. … For example, stock options and bonuses fall … under variable compensation plans. …