This article focus to Discuss on Compensating Employees. Employee compensation identifies all work‐related payments, such as wages, commissions, insurance and time off. Wages and salaries are the simple forms of compensation and use job evaluations that decide the relative values of jobs on the organization. Under the on an hourly basis wage system, employees are paid a limited amount for each hour they work. The system is generally used for lower knowledgeable occupations. Salaried employees be given a fixed sum per 1 week or month, no matter the quantity of hours they work.