Compensation & Benefits

Posted in Human Resource Terms, Total Reads: 11568
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Definition: Compensation & Benefits

Compensation and benefits refers to the compensation/salary and other monetary and non-monetary benefits passed on by a firm to its employees.

This can include various components:

Fixed pay : This is the basic salary paid to the employee irrespective of any other factor. This is stated clearly in the employment contract

Variable Pay: This is the additional compensation paid to employee based on employee’s performance, company performance etc.

Equity Pay: Employees are awarded shares of the company, often at a discounted price. Employees are expected to make money out of them by the appreciation of the stock price and the growth of the company

Other benefits: Other benefits may include mediclaim, insurance policies, company owned car of flat etc.

 

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