Financial compensation refers to the payment or benefits that an individual receives in exchange for their work or services. This can include wages, salaries, bonuses, and other forms of remuneration. The purpose of financial compensation is to reward employees for their contributions and to motivate them to perform well in their roles. In addition to direct payments, financial compensation may also encompass non-monetary benefits such as health insurance, retirement plans, and paid time off. These additional benefits can enhance an employee's overall compensation package, making it more attractive and competitive in the job market.