Compensation

What is Compensation?

An employee’s regular salary or hourly rate, as well as any other forms of payment like overtime, bonuses, retirement benefits, health benefits, stock options, and other non-financial incentives, are all considered compensation.

Why Compensation Matters

Compensation plays a key role in an organization’s total compensation strategy. Getting this element right helps attract qualified candidates, retain top performers, and maintain internal pay equity.

HR and payroll teams should regularly benchmark against market data and review calculations to ensure accuracy, fairness, and compliance with applicable wage and hour laws.