University of California, Santa Barbara

Performance-Based Pay and Incentive Plan Design

University of California, Santa Barbara

Performance-Based Pay and Incentive Plan Design

Christina Chung

Instructor: Christina Chung

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Gain insight into a topic and learn the fundamentals.
Beginner level

Recommended experience

5 hours to complete
Flexible schedule
Learn at your own pace
Gain insight into a topic and learn the fundamentals.
Beginner level

Recommended experience

5 hours to complete
Flexible schedule
Learn at your own pace

What you'll learn

  • Compare base pay, bonuses, commissions, and other incentives and explain how they can influence employee performance.

  • Evaluate pay programs and recommend fair, practical improvements for different employees, jobs, and workplaces.

Details to know

Shareable certificate

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Recently updated!

October 2026

Assessments

4 assignments

Taught in English

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Build your subject-matter expertise

This course is part of the Managing Employee Compensation and Benefits Specialization
When you enroll in this course, you'll also be enrolled in this Specialization.
  • Learn new concepts from industry experts
  • Gain a foundational understanding of a subject or tool
  • Develop job-relevant skills with hands-on projects
  • Earn a shareable career certificate

There are 4 modules in this course

Compensation choices shape employee motivation, behavior, and organizational results. In this module, you’ll distinguish base pay, variable pay, and incentive compensation; apply reinforcement and expectancy theories; compare individual, team, and organization-wide incentive plans; and connect rewards to meaningful performance measures. By the end, you’ll be able to evaluate incentive options and design performance-based compensation strategies that are aligned, fair, simple, and sustainable.

What's included

5 videos4 readings1 assignment

Compensation decisions must account for different roles, employee groups, work arrangements, and legal requirements while remaining fair and financially responsible. In this module, you’ll compare approaches across job functions, career stages, employee classifications, and international, unionized, and remote workforces. You’ll also use organizational, workforce, and employee feedback measures to assess results. By the end, you’ll be able to recommend and improve compensation approaches for diverse workforce needs.

What's included

4 videos2 readings1 assignment

Executive compensation and changing workforce expectations create important financial, ethical, and organizational decisions. In this module, you’ll examine executive pay components and the governance, compliance, transparency, and ethical considerations that shape them. You’ll also analyze trends in pay transparency, pay equity, skills-based compensation, and technology. By the end, you’ll be able to evaluate compensation practices and recommend evidence-based improvements that can be implemented and monitored over time.

What's included

4 videos2 readings1 assignment

Compensation decisions rarely involve a single goal or workforce need. In this final module, you’ll bring together pay design, motivation, performance measures, employee classification, workforce differences, executive compensation, governance, and emerging trends. You’ll apply evidence and professional judgment to realistic organizational challenges, weigh fairness, compliance, cost, and strategic alignment, and develop compensation recommendations that can be communicated, implemented, monitored, and improved over time.

What's included

1 video3 readings1 assignment

Earn a career certificate

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Instructor

Christina Chung
University of California, Santa Barbara
5 Courses582 learners

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