Written for current and aspiring managers, this textbook guides readers through the core components of compensation and puts them in the manager's chair, challenging them to apply their understanding to solve business problems such as attracting, managing, and retaining company talent. The book's central theme, supported by extensive treatment of compensating differentials, is that compensation is heavily driven by market competition.

The coverage also includes analytics, negotiation and bargaining, wage theft, and non-profits and small businesses, as well as a detailed treatment of stock options. Case studies are included to demonstrate the principles in practice, and lessons for managers in each chapter provide practical advice and takeaways.

A rich package of online teaching and learning materials, including teaching slides, sample syllabi, additional case studies, and a test bank is also provided to support teachers and students.