What is Compensation?

Compensation, in the context of employment, refers to the total remuneration an employee receives for their work. This typically includes base salary or wages, but often extends to encompass benefits such as health insurance, retirement plans (e.g., 401k), paid time off (vacation, sick leave), bonuses, stock options, and other perks. Compensation strategies are designed to attract, retain, and motivate employees, while also aligning with the company's financial capabilities and overall business objectives.