Industrial and Organizational Psychology Commons^™

Compensation, Megan Paul

Umbrella Summaries

What is compensation? For the purposes of this review, compensation is defined in two primary ways: a) pay and b) pay satisfaction. Pay refers to “the amount of money an individual receives for their job” (Rubenstein et al., 2017, p. 6). It is sometimes measured as the exact amount or in terms of pay levels (Judge et al., 2010). Pay satisfaction is about an employee’s feelings about their pay, either in general or in terms of more specific aspects. Depending on how it is measured, pay satisfaction often also includes feelings about benefits, which might be more appropriately called compensation …