Pay, or compensation, refers to the financial remuneration that employees receive in exchange for their work. This can include various forms of payment, such as salaries, hourly wages, bonuses, and commissions. Compensation is a key factor in attracting and retaining talent within an organization, as it reflects the value placed on an employee's skills and contributions. In addition to direct monetary payments, compensation may also encompass benefits like health insurance, retirement plans, and paid time off. These additional perks can enhance the overall value of a compensation package, making it more appealing to potential and current employees.