Compensation

Compensation is the total amount an employee receives in exchange for their work, paid out monthly in most organizations and usually made up of base salary, bonuses, incentives, and various other additions.

It’s worth noting that compensation isn’t only money, though money is obviously a big part of it. It can come as either cash or non-cash payments, and the list of what counts is longer than most people expect:

• Base pay (hourly or salaried)
• Commissions
• Overtime pay, shift differentials, longevity pay
• Bonuses
• Profit-sharing distributions
• Merit pay or recognition
• Incentive plans or achievement awards
• Tip income
• Benefits like dental, medical, insurance, vacation, leave, retirement
• Stock options
• Travel, meal, or housing allowances
• Child care and tuition assistance
• Gym memberships and free lunches
• Employee assistance programs covering counseling, legal advice, and similar services
• Health and wellness benefits
• Other non-cash perks