1  Overview of compensation management

1.1 Definition of Compensation

Compensation refers to the total monetary and non-monetary rewards that employees receive in exchange for their work and services. It includes salaries, wages, bonuses, incentives, benefits, and perquisites, designed to attract, retain, and motivate employees while ensuring fairness and competitiveness.

Key Definitions:
1. Milkovich & Newman (2005):
“Compensation refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship.”

  1. Gary Dessler (2013):
    “Compensation includes all forms of pay or rewards going to employees and arising from their employment.”