Total compensation can be calculated as __________.

Total compensation encompasses all forms of financial returns and tangible benefits that employees receive in exchange for their work. The correct formula recognizes several components: salary, which is the fixed compensation paid for an employee's role; variable pay, which may include commissions, bonuses, or incentives based on performance; and benefits, which might range from health insurance and retirement plans to paid time off and other perks.

This comprehensive view of total compensation captures how employee remuneration can extend beyond just base pay to include a mix of fixed and variable compensation, along with employer-provided benefits that enhance the overall value of employment. By including these diverse forms of compensation, organizations can better appreciate the full impact of their remuneration strategies on employee motivation, retention, and satisfaction.