Compensation models are frameworks that organizations use to determine how employees are paid. These models can include various components such as base salary, bonuses, and benefits. The goal is to create a fair and motivating pay structure that aligns with the company's objectives and attracts talent. Different compensation models can be tailored to specific industries or job roles. For example, a commission-based model may be used in sales, where employees earn a percentage of the sales they generate. Alternatively, a salary plus bonus model might be more common in corporate settings, rewarding employees for meeting performance targets.