Compensation what does it mean what are the types

Compensation what does it mean what are the types

Understanding the different types  of compensation is essential if you are a compensation specialist, HR leader, payroll specialist, business owner or manager. Businesses are legally responsible for manager. Businesses are legally responsible for compensating workers for their labor, of course. But you are also responsible explaining compensation to candidates and employees. This is particularly critical during the hiring process, performance reviews, salary reviews, and stay interviews.

However, the terms used in the industry to categorize and discuss compensation can sometimes be confusing.

As compensation can take many forms, it is essential that workers understand how they are begin compensate, the different types of compensation that apply to them and the total value of their compensation package. Although this might seem like an over-complicated way of describing wages. It makes sense once you understand gets nuanced when broken down into base pay, commission, tips, bonuses, stock options, benefits and other types of rewards.

Let’s look at the different types of compensation in more detail.

First, let’s start with a definition for compensation.

However, it’s important to not note that compensation can also refer to payout as the result of a lawsuit.

In a more general sense, compensation can mean anything of value given to make up for a loss, such as a paid dinner to compensate you for your time and trouble”. The word compensation  comes from the latin verb compensation, which means to weigh against. In this sense, compensation is a counterbalance. Compensation usually takes the from of monetary payment  exchanged for time, labor and expertise.

Understanding the different types  of compensation is essential if you are a compensation specialist, HR leader, payroll specialist, business owner or manager. Businesses are legally responsible for manager.

Businesses are legally responsible for compensating workers for their labor,

Of course, but you are also responsible explaining compensation to candidates and employees. This is particularly critical during the hiring process, performance reviews, salary reviews, and stay interviews. However, the terms used in the industry to categorize and discuss compensation can sometimes be confusing.

As compensation can take many forms. It is essential that workers understand how they are begin compensate, the different types of compensation that apply to them and the total value of their compensation package. Although this might seem like an over-complicated way of describing wages. It makes sense once you understand gets nuanced when broken down into base pay, commission, tips, bonuses, stock options, benefits and other types of rewards.

Let’s look at the different types of compensation in more detail.

First, let’s start with a definition for compensation. When talking about compensation, we usually mean the payment received by an employee from an employer in the from of a salary, wages, benefits an variable pay. However, it’s important to not note that compensation can also refer to payout as the result of a lawsuit. In a more general sense, compensation can mean anything of value given to make up for. A loss, such as a paid dinner to compensate you for your time and trouble”. The word compensation  comes from the latin verb compensation, which means to weigh against.

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