Compensation is the amount of monetary or non-monetary benefits provided to an employee by the employer in return to the work done by the employee in a particular period of time. This is aimed at motivating better performance by the employees, retaining them in the organization, rewarding them for their efforts etc.
Compensation may include profit sharing, benefits, bonuses, overtime pay, rewards, commissions in the form of money or non-monetary benefits can also be given in the form of gift cards, stock options, company accommodation or vehicle, or other such things that are not in the form of money but can be taxable.
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