Pay (Compensation)
Remuneration employees receive: salary (fixed annual), wages (hourly), bonus, commission, benefits.
Formula
Total Compensation = Base Pay + Bonuses + Benefits
Real World
Goldman Sachs pays junior analysts a high base salary plus a substantial year-end bonus, using compensation to attract top graduates away from tech firms like Google.
Exam Focus
Link pay explicitly to a motivation theory (e.g. Herzberg's hygiene factors) to access top-band marks on 'discuss' questions.
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