Total compensation refers to the complete pay package offered to employees by an organization, including both monetary and non-monetary benefits. In addition to base salary, total compensation may include bonuses, commissions, profit-sharing, stock options, retirement benefits, health insurance, paid time off, and other perks or incentives. Total compensation packages are designed to attract and retain employees, motivate performance, and reward contributions.
Employers strive to offer competitive total compensation packages that align with industry standards and meet the needs and expectations of employees. Total compensation plays a crucial role in employee satisfaction, engagement, and retention, as it reflects the value that an organization places on its employees and their contributions. By offering competitive total compensation packages, organizations can attract top talent, reduce turnover, and maintain.
You may also be interested in learning about these terms:
Total Compensation
Benefits Package
Total Compensation
