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Compensation is a reward given in monetary value by the employer to their employee for their good performance in their domain. It is recognition of talent by the employer and expectation of reward for an employee. Compensations are meant to boost the morale and keep up the trust of employees high for their company. Attractive compensations make employees work hard and bring out new ways to achieve their goals. Salary, bonus, pension, profit sharing etc. comes under compensation plan.
Benefits on the other hand, are extra perks that comes with level of job one is at and employers make sure to take good care of their well being. Each designation comes with its own benefits. Company cars, house rentals, life insurance, dental plans, medical insurance, memberships, credit cards etc. are some of the benefits that employees enjoy.
Human resource department handles the compensation and benefits of its workforce and compenben is a short form coined by HRs. A well-designed Compenben plan attracts good talent to an organisation.
