Quick Answer: What Does Compensation Mean?

What is another word for compensation?

compensationrecompense, repayment, payment, reimbursement, remuneration, requital, indemnification, indemnity, redress, satisfaction.damages, reparations.North American informal comp.archaic guerdon, meed.rare solatium..

What is compensation and its types?

The total compensation offered to an employee may be broken down into direct, indirect and intangible compensation. Direct compensation involves monetary payments to employees for time worked or results obtained.

What are your expectations for compensation?

Provide a salary range The employer will very likely want a specific number, so another strategy is to give them a number or a range. Assuming your target salary is $47,000, you could say: I’m looking for a position which pays between $45,000 and $52,000 for a 35-hour work week.

What is an example of compensation?

Compensation may also be used as a reward for exceptional job performance. Examples of such plans include: bonuses, commissions, stock, profit sharing, gain sharing.

What is a compensation strategy?

A compensation strategy lays out your organization’s point of view on how you will determine pay and benefits for employees. It aligns all of your compensation resources to your business goals, helps you decide where you want to compete, how competitive you need to be and what you choose to reward.

What is the best form of compensation?

Pay for performance is by far one of the most popular forms of compensation that employees can offer their workforce.

What are the three types of compensation?

3 Types of Compensation Packages To Consider and WhyStraight salary compensation. Salaried employees are paid a set annual amount, and provided that amount is more than $23,660 per year, they do not receive overtime pay. … Salary plus commission compensation. … Straight hourly compensation.

What is the difference between compensation and reward?

Compensation would include rewards when you offer monetary payment such as incentives, various bonuses and performance bonus. Organisations reward their staff when they attain the goals or targets that they have jointly set with the employees. Rewards can be non-monetary such as a paid vacation for two.

What does compensation mean in a job?

Compensation is defined as the total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required.

What does the word compensated mean?

: to provide something good as a balance against something bad or undesirable : to make up for some defect or weakness. : to give money or something else of value to (someone) in return for something (such as work) or as payment for something lost, damaged, etc.

What are the four types of compensation?

The Four Major Types of Direct Compensation: Hourly, Salary, Commission, Bonuses. When asking about compensation, most people want to know about direct compensation, particularly base pay and variable pay. The four major types of direct compensation are hourly wages, salary, commission and bonuses.

How is compensation determined?

More generally, salary is determined by factors like title, skill set, level, location and more. Companies often approach individual compensation plans based on the candidate, too.

What is the compensation package?

A compensation package is the combination of salary and fringe benefits an employer provides to an employee. … Benefits include such things as vacation days, sick days, personal days, paid company holidays, pension plans, stock ownership plans, health insurance, dental/eye insurance, life insurance, and more.

What makes a good compensation package?

The key to creating a good compensation package is balance. … Plus, providing adequate and competitive compensation that’s based exclusively on either salary or commission most likely won’t attract or retain talent, motivate your sales staff, or allow your company to achieve its maximum profitability.