Compensation

Compensation could refer to:

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• The restitution for an injury suffered
• Compensation, an essay by Ralph Waldo Emerson
• In chess, compensation refers to an advantage one player has to offset some other (generally material) disadvantage.
• In human resources, it looks at the pay structures within organizations.
• Some of the main issues in the area of compensations are:
• How much should companies pay to attract, retain, and motivate employees?
• Should they pay salaries or variable rewards (a.k.a. piece-rate)?
• Should they provide benefits, and if so, to what degree?
• What's an appropriate discrepancy between the pay for high and low performers?
• Would it make sense to provide stock options or stock bonuses?
• Reinforcement mechanism (additional options grant, vesting schedule. etc) to retain top performers in the organization
• Compensation is also tightly linked to performance appraisal. If you have poor ways of measuring performance, that has consequences for how compensation should be structured.
 
Compensation: See also ►