Compensation

Compensation refers to the total rewards provided to employees for their work. This includes not only salary or wages, but also benefits like health insurance, retirement plans, bonuses, and paid time off. The purpose of compensation is to attract, motivate, and retain employees while ensuring fair pay for their contributions. It can vary based on factors such as job role, experience, industry standards, and geographical location. Essentially, compensation is the financial and non-financial recognition of an employee’s value to an organization.