Meaning of compensation

Meaning of compensation :

Remuneration is the compensation an employee receives in return for his or her contribution to the organization.  Remuneration occupies an important place in the life of an employee. His or her standard of living, state in the society, motivation loyalty, and productivity depend upon the remuneration he or she receives. For the employee to, employee remuneration is significant because of its contribution to the cost of production. Besides, many battles (in the form of strikes and lockouts) are fought between the employer and the employees on issues relating to wages or bonus. For HRM too, employee remuneration is a major function. The HR specialist has a difficult task of fixing wages and wage differentials acceptable to employees and their leaders.