Knowing what is compensation is a key part of putting together your compensation packages. So without further ado, let’s get into compensation meaning and how to determine it. Compensation is the total cash and non-cash payments that you give to an employee in exchange for the work they do for your business.
Compensation is the total cash and non-cash payments that you give to an employee in exchange for the work they do for your business. It’s typically one of the biggest expenses for businesses with employees. Compensation is more than an employee’s regular paid wages. It also includes many other types of wages and benefits. What is base pay?
compensation payment. › an amount of money that is paid to someone because they have been hurt, or because something has been lost or damaged: Workers' compensation payments for injured employees have soared recently. The company faces huge compensation payments to farmers for destroying crops contaminated with genetically modified seeds.