What Is Compensation?

Compensation is the total reward received by an employee in exchange for services performed for an organization. It can include both direct pay (salary and wages) and indirect pay (benefits programs).

Human Resource Compensation's Objectives

The purpose of the University of Pennsylvania’s compensation system is to achieve the following objectives:

• Evaluate jobs consistently and fairly.
• Place University staff positions in the appropriate pay grade with salary ranges that are competitive with the marketplace for comparable jobs.
• Regularly measure the external market value for comparable jobs and adjust the salary structures accordingly.
• Create and support a system which will provide flexibility to managers in pay administration and to staff in career development.