What does compensation mean in simple words?
Typically, compensation refers to monetary payment given to an individual in exchange for their services. In the workplace, compensation is what is earned by employees. It includes salary or wages in addition to commission and any incentives or perks that come with the given employee’s position.
What is compensation synonym?
Some common synonyms of compensate are indemnify, pay, recompense, reimburse, remunerate, repay, and satisfy. While all these words mean “to give money or its equivalent in return for something,” compensate implies a making up for services rendered.
Shall be compensated meaning?
1. verb. To compensate someone for money or things that they have lost means to pay them money or give them something to replace that money or those things. The official promise to compensate people for the price rise clearly hadn’t been worked out properly. [ VERB noun for noun]
Is compensation a salary?
Compensation is the combination of salaries, wages and benefits that employees receive in exchange for them doing a particular job. It can include an annual salary or hourly wages combined with bonus payments, benefits, and incentives.
Is compensation same as salary?
Key Takeaways. Annual compensation, in the simplest terms, is the combination of your base salary and the value of any financial benefits your employer provides. Annual salary is the amount of money your employer pays you over the course of a year in exchange for the work you perform.
Whats the opposite of compensation?
What is the opposite of compensation?
What does compensation mean in HR?
Related Resources Direct compensation refers to wages paid by employers to employees in exchange for work. Compensation also includes variable pay in the form of short- and long-term incentives, such as cash bonuses, commissions and company stock awards.
What does compensation mean in law?
Compensation is payment or remuneration for work or services performed or for harm suffered (see also damages).
How do you use compensate?
How to use Compensate in a sentence
- These advantages compensate for the greater first cost. …
- Water-power and petrol largely compensate for the lack of coal. …
- He might thus compensate for his numerical inferiority by superior mobility and superior leadership.
What is compensated leave?
Compensatory Leave ▪ Compensatory leave is paid time off for an. eligible employee whose supervisor has. approved: o additional hours in a workweek in which. the employee has taken a holiday or.
What does compensate mean in relationships?
In psychology, compensation is a strategy whereby one covers up, consciously or unconsciously, weaknesses, frustrations, desires, or feelings of inadequacy or incompetence in one life area through the gratification or (drive towards) excellence in another area.
Why is salary called compensation?
Your salary is called compensation because you are being compensated for being somewhere you’d rather not be, doing something you’d rather not do.
What is total employee compensation?
Total compensation is expressed in the same way as a base salary, which is in terms of gross income on an annual basis. However, it includes more than just the money paid to an employee. Total compensation includes the base salary, but it also includes the value of any benefits received in addition to your salary.
What is compensation and bonus?
In workplace settings, a bonus is a type of compensation an employer gives to an employee that complements their base pay or salary. A company may use bonuses to reward achievements, to show gratitude to employees who meet longevity milestones, or to entice not-yet employees to join a company’s ranks.
How is compensation calculated?
Your Current Compensation Is Determined by These Factors Essentially, it’s a combination of the value of your pay, vacation, bonuses, health insurance, and any other perk you may receive, such as free lunches, free events, and parking. These components are encompassed when you define compensation.
What are the 4 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.
How do I calculate my total compensation?
Basically, you want to add the value of everything you receive from your employer together. To calculate your total compensation, start with your salary (that’s likely the largest number in your total compensation, after all) and add the value of your employer-provided health insurance.