COMPENSATION MANAGEMENT

Introduction The question of what is compensation is important to both the employer and employee and is important to be answered in their relationship. Compensation is the total cash and non-cash payment that is exchanged between employee and organization for the work done by the employee for the organization. Compensation is more than an employee’s regular paid wages. It mainly include base pay, sales commission, overtime wages, bonus pay, recognition or merit pay, benefits (insurances, standard, vacation policy, retirement, stock option, other non- cash benefits).