This book is written for current and aspiring managers to guide them through the core components of compensation, empowering them 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 includes analytics, negotiation and bargaining, wage theft, and non-profits and small businesses, as well as a detailed treatment of stock options. Case discussions 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.