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

Behavioural Competency

What is Behavioural Competency ?    ‘Behavioural Competency’ refers to the personality attributes a candidate possesses that helps the HR understand how successful that individual

Workplace Phobia

What is Workplace Phobia?   ‘Workplace Phobia’ is a kind of phobia induced by acute anxiety towards one’s workplace and the experiences related with it.

Gender Pay Gap

What is Gender Pay Gap ? ‘Gender Pay Gap’ refers to the difference that has been existing in the compensation packages provided to males and

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