Pay and benefits are critical factors in the attraction, motivation, and retention of talented employees. The key to a successful pay and benefits package is how well it motivates employees to consistently exhibit attitudes and behaviors that are aligned with the organization’s goals, strategies, and culture. Therefore, the motivational role of these rewards should determine pay and benefits. Organizations should offer pay and benefits that are competitive with other organizations’ pay and benefits; organizations should also clearly use pay and benefits to motivate employees to attain specific outcomes that the organization wants to see. This course discusses the role that pay and incentives plays in worker motivation, specific ways employees are compensated, and how both tie-in to the HR strategic process.