What does financial compensation include?

Financial compensation is the payment an individual or group receives for their work, products, or services. This can take the form of annual salaries, hourly wages, employee benefits, payments for freelance projects, or workers‘ compensation. Variable compensation is another form of payment based on employee performance, often used to incentivize employees to perform better. This can include bonuses, commissions, incentives, stock options, and profit-sharing plans. There are also subsets within these areas, such as retention bonuses, project-based bonuses, and management programs.