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

Candidate Relationship Management (CRM)

What is Candidate Relationship Management (CRM) ?    ‘Candidate Relationship Management’ is the term used to manage the relationships with the current and future candidates.

Summary of Material Modifications

What is the Summary of Material Modifications?   ‘Summary of Material Modifications’ or ‘SMM’ refers to the documented summary that needs to be provided by

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