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Compensation

What is сompensation?

Main HR glossary Compensation

Compensation is the remuneration employees receive for performing their job duties. It includes both base salary and additional payments, such as bonuses and performance-based incentives.

Base salary is the foundation of kompensaciya and is typically determined by factors like skill level, experience, and job complexity. Bonuses and incentives, on the other hand, may be tied to specific achievements, such as exceeding a sales target or successfully completing a project.

Some companies offer flexible compensation packages, allowing employees to choose between cash payments and additional benefits, such as extended health insurance for their families or extra paid time off.

A well-structured compensation policy helps companies attract and retain top talent, boost employee motivation, and strengthen their reputation as an employer of choice.

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Glass ceiling effectHalo effectEmotional intelligenceElectronic signatureAgeismAbleismWorkforce sizeEmployee value proposition (EVP)OKR goals for HR professionalsAbsence trackingPerformance managementHuman capital management (HCM)Absence managementBenefits managementQuality managementKnowledge managementEmployee performance improvementEmployee satisfactionRetention interviewHR technologyBias-free testingEmployee turnoverStructured interviewHR strategyRetention strategyStrategic planningEmployee handbookBoomerang employeeSourcingSaltingShortened workweekNon-disclosure agreement (NDA)Screening testsSituational leadershipHRM system (HRMS)Performance management systemApplicant tracking system (ATS)Seasonal employmentOvertime workJob marketEmployee referral programsRecruiting softwareRecruitingEmployee empowermentPayroll processingEqualityWorkforcePeople managementSkills gapSoft skillsMental health at workHR processesHiring processProfessional developmentSoftware as a service (SaaS)HR management softwareBackground checkTalent acquisitionNew employee introductionHourly employeeContinuous performance managementAbsenteeism policyDirect reportsBehavioral interviewBehavioral competenciesPerformance improvement planFloating holidayTermination letterJob evaluationOffboardingDisability leaveSick leaveLeave of absenceTime trackingHoliday payAgile methodologyOrganizational chartEmployee experiencePaid time off (PTO)Onboarding processZero-based budgeting (ZBB)Job dissatisfactionNepotismIndependent contractorMetricsLoyalty of employees (eNPS assessment)Cross-functional teamsMatrix organizationTurnover rateVacancy rateCompetencyHoliday accrualCompensationCore competenciesKey workerKey Performance Indicator (KPI)Employee classificationEmployee directoryCareer siteCareer growthCareer pathCareer plateauWorkforce planningArtificial intelligence in HRHuman resources information system (HRIS)Intellectual propertyEmployee Net Promoter Score (eNPS)Employee life cycleRevenue per employeeHarassmentJob instructionDocument management in HRVoluntary benefitDisciplinary proceduresDisciplinary actionBusiness partnershipHR dashboardHybrid work modelBusiness agilityFlexible working hoursExit interviewEmployee burnoutOne-on-one meetingsRecruitment funnelEmployee engagementInternal recruitmentVirtual HRVertical organizationWellness programsGross incomeGross amountGross wagesEmployer brandEmployee benefitsSick leave payWell-beingHR business partnerEmployee databaseBuddy systemOutstaffingOutsourcingHR auditAssesment centerUpskillingHR analyticsJob analysisTraining needs analysisWorkforce utilization analysisWorkforce availability analysis


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