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

Glass Ceiling

What is Glass Ceiling ? ‘Glass Ceiling’ refers to the metaphorical invisible ceiling that prevents minorities and women from attaining senior level positions in companies.

Culture Carrier

In every workplace, there is an employee or a group of employees who consistently energize the organization’s spirit. They are called the Culture Carrier. The

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