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Compensation in the context of Personnel and Human Resources is the process of providing financial rewards to employees in exchange for their work. This includes wages, salaries, bonuses, and other forms of remuneration. It is an important part of the overall employee experience, as it can have a direct impact on employee morale, motivation, and productivity. Compensation is also a key factor in attracting and retaining talent, as it is often used to differentiate between employers in a competitive job market.
Compensation is typically managed by a Human Resources department, which is responsible for setting and administering pay policies, as well as ensuring compliance with applicable laws and regulations. Companies in the compensation market include PayScale, Salary.com, and Glassdoor. Show Less Read more