Compensation and benefits refer to the total rewards that employees receive for their work. This includes not only their salary or hourly wage but also additional perks such as bonuses, commissions, and overtime pay. These financial rewards are designed to attract and retain talent within an organization. Benefits encompass non-wage offerings that enhance an employee's overall compensation package. Common benefits include health insurance, retirement plans, paid time off, and other perks like flexible work arrangements or employee discounts. Together, compensation and benefits play a crucial role in employee satisfaction and motivation.