Compensation Plan

A compensation plan is a structured approach that a company uses to determine how it pays its employees. It outlines salaries, bonuses, benefits, and other forms of compensation. This plan ensures that employees are rewarded fairly for their work, aligned with industry standards, and in line with the company’s budget. It may also include incentives for performance or longevity. The goal is to attract, motivate, and retain talent while supporting the company’s overall objectives and culture.