Compensation encompasses the comprehensive rewards provided to employees for their work, including monetary remuneration and non-monetary benefits. This topic...
Employee compensation includes all monetary and non-monetary rewards provided to an individual for their work, such as base salary, wages, bonuses, commissions, and benefits like health insurance, retirement plans, and paid time off.
The main types are direct compensation (e.g., salary, wages, bonuses) and indirect compensation (e.g., health benefits, retirement plans, paid leave, company perks).
Fair compensation is determined by factors like job responsibilities, required skills, experience, education, industry benchmarks, market rates, geographical location, company size, and individual performance.
A robust compensation strategy is crucial for attracting and retaining top talent, motivating employees, enhancing productivity, ensuring internal equity, maintaining external competitiveness, and achieving organizational goals.
Total rewards is an integrated approach to compensation that includes not only direct and indirect financial rewards but also non-financial elements like career development, work-life balance, recognition, and a positive work environment.