Structured around a pay model, this work explains why pay systems work, emphasizing the key strategic policies, techniques and objectives of the pay system. It includes the latest developments in pay for performance, alternative reward systems, competency skills/knowledge based pay, health care benefits and family issues. This edition includes new chapters on performance-based pay, which examine all forms of variable pay, including profit sharing, gainsharing and team-based approaches. In addition, there is increased use of market pricing, broad banding and total compensation.