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A plan, defined as the plan of how to compensate employees for their work efforts, is one of the most common concepts in the professional world. Compensation plans design a number of payment schemes: wages associated with the amount of hours spent at work, wages gained from productivity while working, health benefits, bonuses, and even a cafeteria plan.
A compensation plan, explained as the motivational factor which makes employees show up to work, is the most central concept in the study of human resources. HR professionals around the world spend most of their work day working with compensation plan benefits. The two main methods are salary and commission-based pay.
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