Answer to Question #313220 in Management for Almas

Question

Define Compensation and benefits

Answer 1

Compensation and benefits refers to the compensation/salary and other monetary and non-monetary benefits passed on by a firm to its employees. Compensation and benefits is an important aspect of HRM as it helps to keep the workforce motivated.

The basic components of employee compensation and benefits. Variable pay which is a non-fixed monetary ( cash) reward paid by an employer to an employee that is contingent on discretion, performance, or results achieved. The most common forms of variable pay are bonuses and incentives.