Compensation can be defined in various ways by different authors, as it encompasses a broad range of concepts related to the remuneration and benefits provided to employees in exchange for their work.
Here are some definitions of compensation by different authors:
“Compensation is paying people for work.” – Dale Yoder
“Compensation may be defined as reasonable both financial and non-financial pay and rewards given to the employees in exchange of their physical, mental and spiritual labor.” – M. Ataur Rahman
“Compensation is paying money to the employees’ according to the agreement with the employer.” – Benham
According to Keith Davis, “Compensation is what employees receive in exchange for their contribution to the organization.”
According to Edwin B. Flippo, “The function compensation is defined as adequate and equitable remuneration of personnel for their contributions to the organizational objectives.”
“Compensation includes direct cash payments and indirect payments in the form of employees benefits and incentives to motivate employees to strive for higher levels of productivity.” Cascio (1995)
According to Milkovitch and Newman (2005) “Compensation is all forms of financial returns, tangible services and benefits employees receive as part of an employment relationship.”
“Compensation can be in the form of cash or kind. Compensation may be defined as money received in the performance of work, plus the many kinds of benefits and services that organizations provide their employees. ” (Susan M. Heathfield, 2012)
More Definition of compensation:
- Compensation refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship.
- Compensation is the combination of wages, salaries, and benefits that an employee receives in exchange for their work.
- Compensation includes direct financial payments, indirect payments in the form of employee benefits, and incentives to motivate employees to strive for higher levels of productivity.
- Compensation refers to the monetary and non-monetary rewards employees receive in exchange for their time, talents, efforts, and results they achieve for an organization.
- Compensation includes the financial and non-financial rewards offered to employees in recognition of their contributions to the organization’s success.