This document defines compensation and discusses the goals of compensation professionals and departments. It outlines that compensation includes both intrinsic and extrinsic rewards for employees. The main goals of compensation departments are to achieve internal consistency, conduct job analysis and evaluation, ensure market competitiveness through strategic analysis of external and internal factors, and perform salary surveys. Compensation professionals aim to support recruitment, performance appraisal, training, employee relations, and termination. Extrinsic compensation encompasses salaries, wages, cost of living adjustments, and various benefits that are legally required or provided discretionally.