Salary refers to the fixed compensation paid to an employee by an employer, typically on a monthly or annual basis. It is a key component of the overall compensation package and is determined based on factors such as the employee’s role, experience, qualifications, industry standards, and geographic location. Salary negotiations occur during the hiring process and can also take place during performance reviews or promotions.
A fair and competitive salary is crucial for attracting and retaining talent, as it reflects the value that an organization places on its employees’ contributions. In addition to the base salary, organizations may offer additional compensation in the form of bonuses, commissions, and other financial incentives. Transparent salary structures and regular salary reviews can enhance employee satisfaction, motivation, and loyalty, contributing to the overall success of the organization.
You may also be interested in learning about these terms:
Salary
Negotiation
Performance Management
