Compensation

What is Compensation ?

  
‘Compensation’ is defined as the remuneration provided to an employee in lieu of his or her services. It is distinct from salary as the compensation would include other benefits too apart from the monetary benefits.
 
Various kinds of extra benefits provided to an employee like house rent allowance, travel allowance, gym membership, overtime pay, bonuses, stock options, etc. are all a part of the employee compensation. It helps keep the employee motivated and loyal to the company.
 
There are various types of employee compensation, with the major ones being direct and indirect. Direct compensation refers to the benefits provided to the employee directly. Indirect compensation includes the indirect benefits which the employees get from the company. It includes insurance cover, retirement benefits, incentives, equity-based programs, etc.

More HR Terms

Mid-range Wage

What is Mid-range Wage?   ‘Mid-range Wage’ is the set of 50% of wage values in an ascending wages data set which starts from the

Superior-subordinate Communication

What is Superior-subordinate Communication ?    ‘Superior-subordinate Communication’ refers to the communication between a team leader and their team members. It is significant for the

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