can someone please help me out with as to what is the difference between compensation and rewards?
From Sri Lanka, Kandy
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From Sri Lanka, Kandy
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Hi Samith, compensation means the entire package that is paid to an employee, which includes all monetary and non-monetary emoluments, i.e., salary, PF, and other such benefits. Rewards are one part of compensation; it's a process that helps in reinforcing behavior. In layman's language, a reward is a monetary or non-monetary recognition given to an employee in lieu of better performance.
Hope this answers your queries. Let us know if you have any other doubts.
Regards,
Archna
From India, Delhi
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115Hope this answers your queries. Let us know if you have any other doubts.
Regards,
Archna
From India, Delhi
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Hi, Compensation includes monthly salary and all benifits like,pf,esi,medical,gratuity and reward is the amount or benifit which one will get for his extra ordinary performance Regards Padam
From India, Delhi
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From India, Delhi
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I agree with Archana, HR. Otherwise, compensation is given for the work done for the company under the job profile. Rewards may be given for other supportive social and environmental activities and may not be regular.
From India, Gurgaon
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From India, Gurgaon
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thanks you very much for answering my question.I was confused because some people use the term "reward management" for compensation management. kind regards samith
From Sri Lanka, Kandy
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From Sri Lanka, Kandy
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Could anybody give me an example of a reward, please? I suppose a reward could be a promotion, an enhanced job profile, a special increment in salary, praise, recognition, etc. Could you tell me, please, if I am right? If yes, then what are other forms of reward? If not, then what actually is the reward? Please satisfy my query.
From India, Hyderabad
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From India, Hyderabad
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Yes, Ritu. A reward encompasses all these and more. Even a good working environment can be a reward. A paid vacation can be a reward. A promotion, an increment—these are all rewards. Anything given to an employee for good performance is a reward, apart from the salary and other benefits he/she receives.
Regards,
Archna
From India, Delhi
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Regards,
Archna
From India, Delhi
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As mentioned above by Archana, does compensation also include non-monetary benefits? If so, what kind of benefits could they be? I believe they may include accommodation, healthcare, transportation, etc., but these are not typically part of the CTC. Please help me understand this better.
From India, Hyderabad
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From India, Hyderabad
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Hi everyone, just went through the above discussion on Comp Vs Reward. I have a few points to make here:
The Psychological Difference Between Compensation and Rewards
What I feel is there is no such difference between Compensation and Rewards; I believe these words are interchangeably used by organizations. The only difference I feel is more of a "PSYCHOLOGICAL" nature. Now, why I am calling it Psych... is that using the word Reward gives a positive feeling to employees for the skill, time, and knowledge they have contributed to the company; reward gives them a feeling of receiving a return for something that they willingly offered to the company. On the other hand, when I use the word COMPENSATION, it connotes a "negative word" of paying employees for what they provided, which they were not willing to give, but since you pay them, they offered it to you.
This is just my perception of these two words. Please feel free to comment!
Regards,
Shweta
From India, Hyderabad
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The Psychological Difference Between Compensation and Rewards
What I feel is there is no such difference between Compensation and Rewards; I believe these words are interchangeably used by organizations. The only difference I feel is more of a "PSYCHOLOGICAL" nature. Now, why I am calling it Psych... is that using the word Reward gives a positive feeling to employees for the skill, time, and knowledge they have contributed to the company; reward gives them a feeling of receiving a return for something that they willingly offered to the company. On the other hand, when I use the word COMPENSATION, it connotes a "negative word" of paying employees for what they provided, which they were not willing to give, but since you pay them, they offered it to you.
This is just my perception of these two words. Please feel free to comment!
Regards,
Shweta
From India, Hyderabad
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Agree with Shweta, but I have a question that is there any practical difference between Compensation and benefits?
From Pakistan, Lahore
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From Pakistan, Lahore
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As Ms. Swetha said, "reward" is a positive term, and "compensation" is a negative term. When we say "reward," we feel happy as it accompanies a happier event/contribution. In contrast, when we say "compensation," it typically follows a negative scenario such as exhausted labor or a less joyful contribution. Additionally, the term "reward" is commonly used for discretionary or voluntary payments, while "compensation" is typically associated with legal payments. In legal contexts, therefore, the term "compensation" is more appropriate than "reward."
From India, Kochi
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From India, Kochi
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