Compensation structure

Definition

The framework determining how and how much employees are paid, including base salary, bonuses, commissions, and equity. The secret formula you'll never fully understand because HR refuses to make salary bands public.

Example Usage

Our compensation structure ties 20% of bonuses to company-wide metrics and 80% to individual performance.

Origin

Formalized in the early 1900s with scientific management; became more complex post-WWII

Fun Fact

Companies with transparent compensation structures have 30% lower turnover rates and 25% higher job satisfaction.

Source: Compensation and benefits management

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