Compensation & Benefits is often referred to in HR as Comp & Bens or C&B. It can be a team that is part of HR and is often linked with payroll.
In the context of this HR glossary, we are referring to what Comp & Bens means and what it includes.
Compensation refers to your basic salary. You can find more information on basic salary here.
Benefits refer to any additional entitlements, monetary or otherwise, that you receive in addition to your basic salary. Examples can be, but are not restricted to: eligibility to a bonus or a commission scheme; a company vehicle; a fuel card or paid mileage; enhanced holiday allowance; a pension scheme; health care cover; enhanced payments such as maternity or paternity pay; etc.
Many benefits are non-contractual and won’t show in the contract of employment. Eligibility may be based on successfully passing the probationary period first, or reaching set targets.
Comp & Bens are important because they can help attract and retain talented employees. Most of us never really think of the total compensation and benefits we get. We only look at our salaries and forget that, with all the benefits, we earn far more than that figure.
If you would like advice on compensation & benefits or how to incentivise your workforce, get in touch!
