Employee compensation refers to the total rewards that employees receive for their work, which includes not only their base salary but also bonuses, benefits, and other incentives. This comprehensive approach ensures that employees are fairly compensated for their contributions and helps organizations attract and retain talent. In addition to monetary compensation, benefits such as health insurance, retirement plans, and paid time off play a crucial role in employee satisfaction. A well-structured compensation package can enhance employee morale and productivity, ultimately benefiting the organization as a whole.