Compensation and benefits is a term that refers to all of the types of compensation and benefits that an employee receives in return for their work. This can include salary, bonuses, commissions, vacation time, sick leave, health insurance, etc.
Monetary compensation is just one benefit that employees receive; non-monetary benefits can be just as significant. These can include job satisfaction, a positive work-life balance, opportunities for professional development, and more.
Compensation and benefits are crucial elements of any employment relationship and play a significant role in attracting and retaining talented employees. When designing a compensation and benefits package, employers need to carefully consider what will best motivate their employees and help them achieve their goals.
Four basic categories are used to classify employee compensation and benefits:
Employees are typically compensated based on their skills, experience, and level of responsibility. Factors like job market supply and demand, company size, industry, and geographic location set salary levels. Employers need to offer competitive compensation packages to attract and retain the best talent. Benefits can be an essential part of the employment equation for attracting and retaining talent.