Compensation and benefits culminate the whole package for employees in an organization, and they are the main incentives for the workers to be able to perform well at their job. The critical difference between compensation and benefits is that compensation is the money paid to a worker in return for a job well done.
In contrast, benefits are non -financial forms of value provided in tandem with compensation. These benefits include social security plans, insurance plans, and paid absences. Falling under the umbrella of benefits includes health insurance, life insurance, retirement plans, holidays, and sick days. Compensation, on the other hand, includes equitable wages, salaries, and commissions.
The compensation that a worker receives depends on several factors. These include years of education and work experience. Compensation can also be negotiated depending upon the employee’s work ethic and desire to move up the ladder in the organization.
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