Compensation concept Meaning of compensation Objective & importance of compensation management Base vs supplementary compensation Components & types of compensation
Compensation is the total reward received by an employee in exchange for services performed for an organization. Organizations usually associate compensation/pay ranges with job descriptions in the organization. The ranges include the minimum and the maximum amount of money that can be earned per year in
OBJECTIVES
±Direct compensation
The employer exchanges monetary rewards for work done.
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Indirect compensation
Employer-provided benefits³like health insurance³that are provide employees for being a member of the organization.