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If organizations want to reward their employees fairly, they need to understand different types of compensation and how to create attractive compensation packages for their employees. Let’s dive into different types of compensation employers can offer. ContentsWhat is compensation?What are the different types of employee compensation?– Direct compensation– Indirect compensation– Total compensation What is compensation? Compensation refers to any payment given by an employer to an employee during their period of employment. In return, the employee will provide their time, labor, and skills. This compensation can be in the form of a salary, wage, benefits, bonuses, paid leave, pension funds, and stock options, and more. Compensation is also sometimes referred to as remuneration outside of the U.S. and Canada. Understanding the different types of compensation is critical to creating an attractive compensation package for your current employees. Not only will this help you retain your top talent, but it will also help you attract new talent to your organization—as long as you set yourself apart from your competition. Conducting a compensation analysis and creating a solid compensation strategy is the responsibility of HR and compensation & benefits professionals. Where there isn’t a Human Resources team in place, this will usually
