Fair compensation refers to the practice of providing employees with a salary or wage that reflects their skills, experience, and the value they bring to an organization. It ensures that workers are paid appropriately for their contributions, taking into account factors such as industry standards, job responsibilities, and local cost of living. This concept is essential for promoting workplace equity and employee satisfaction. When employees receive fair compensation, it can lead to increased motivation, productivity, and retention. Organizations that prioritize fair compensation often foster a positive work environment and enhance their reputation in the job market.