Compensation and benefits

This article is about the professional discipline that oversees compensation and benefits in an organization, and the policies involved. For types and levels of compensation, see Remuneration.

Compensation and benefits refer to remuneration provided by employers to employees for work performed. In the United States, it is commonplace for a significant amount of a worker's earnings to manifest as benefits; in 2012, among those working in wholesale trade, approximately one third of remuneration was through benefits.

Compensation is the direct monetary payment received for work, commonly referred to as wages. It includes various financial forms such as salary, hourly wages, overtime pay, sign-on bonuses, merit and retention bonuses, commissions, incentive or performance-based pay, and restricted stock units (RSUs). Benefits refer to non-monetary rewards offered by employers, which supplement base pay and contribute to employee well-being and satisfaction. These benefits may include health insurance, retirement savings plans, paid time off (PTO), and childcare support.

In the United States, workers often seek employers with desirable benefits, especially healthcare, which is one of the most sought-after benefits.

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