ELI5: Explain Like I'm 5

Compensation of employees

Employees are people who do work for a company or organization. When an employee does work, the company usually pays them money in exchange for the work they did. This money is called compensation, and it usually consists of a salary (amount of money paid regularly, usually each month) and sometimes bonuses (additional money paid out at certain times). Companies compensate employees for the work they do because it helps to keep employees motivated, and it is the company's way of thanking employees for their hard work and dedication.