What is Compensation?
Compensation refers to the total rewards employees receive for their work, including both monetary and non-monetary benefits. It typically encompasses:
Base Pay:
Regular salary or hourly wages.
Variable Pay:
Bonuses, commissions, or incentives linked to performance.
Benefits:
Health insurance, retirement plans, paid time off, etc.
Equity or Stock Options:
Company ownership opportunities.
Perks:
Additional allowances for travel, housing, or professional development.
Effective compensation strategies motivate employees, attract talent, and align workforce goals with organizational objectives.