Compensation refers to the financial rewards and benefits an employee receives in exchange for their work, including base salary, bonuses, and incentives. Benefits, on the other hand, are non-financial perks offered to employees, such as health insurance, retirement plans, paid time off, and wellness programs.
More simply; compensation directly relates to an employee’s income; benefits focus on enhancing their overall work experience and well-being.
Learn more about benefits and perks, and how they differ from each other and compensation.