Which term refers to the total rewards provided to employees in exchange for their services?

The term that refers to the total rewards provided to employees in exchange for their services is compensation. This encompasses not only the base salary that employees receive but also other forms of monetary and non-monetary rewards such as bonuses, benefits, and incentives. Compensation is a holistic view of how an organization rewards employees for their contributions, ensuring that their entire package of pay, perks, and benefits aligns with business goals and employee expectations.

While salary represents just one component of compensation, focusing solely on base pay does not capture the full breadth of an employee’s remuneration package. Similarly, incentives and bonuses are specific elements within the broader scope of compensation; they serve as additional motivational tools rather than representing total rewards. Thus, understanding compensation in its entirety is essential for effective human resource management and employee satisfaction.