No Image Available
Visual representation of desired compensation
Employment
Updated August 12, 2025
Desired compensation
'Desired compensation is the pay and benefits you want for a job.' 'It’s your target salary and perks to feel fairly rewarded.'
Category
Employment
Use Case
Used to specify expected salary or benefits during job negotiations
Variants
Base salary, Bonus, Equity, Benefits
Key Features
-
Competitive salary benchmarks
-
Customizable benefits package options
-
Performance based bonus structure
-
Equity & stock incentives
-
End-to-End compensation analytics
In Simple Terms
What it is
Desired compensation is simply what you want to earn or receive in exchange for your work, time, or effort. Think of it like setting a price for something you’re selling—except instead of a product, you’re valuing your skills or labor. It’s the amount of money (or benefits) you’d be happy with for doing a job.
Why people use it
People use desired compensation to make sure they’re paid fairly for their work. Just like you wouldn’t sell a bike for less than it’s worth, you wouldn’t want to work for less than you deserve. It helps you:
Avoid being underpaid
Feel satisfied with your job
Plan your finances better
Negotiate confidently with employers
Basic examples
Imagine you’re babysitting. You might decide your desired compensation is $15 per hour because that’s what others earn for similar work. Here’s how it helps in real life:
Job applications: When asked for salary expectations, you might say, “I’d like $50,000 per year,” so employers know your range.
Freelancing: A graphic designer might charge $100 per project because that covers their time and skill.
Raises: If you’ve been working hard, you might ask for a 10% raise because your effort justifies it.
Desired compensation is like setting a fair price for your time—it ensures you’re rewarded properly for what you bring to the table.
Desired compensation is simply what you want to earn or receive in exchange for your work, time, or effort. Think of it like setting a price for something you’re selling—except instead of a product, you’re valuing your skills or labor. It’s the amount of money (or benefits) you’d be happy with for doing a job.
Why people use it
People use desired compensation to make sure they’re paid fairly for their work. Just like you wouldn’t sell a bike for less than it’s worth, you wouldn’t want to work for less than you deserve. It helps you:
Basic examples
Imagine you’re babysitting. You might decide your desired compensation is $15 per hour because that’s what others earn for similar work. Here’s how it helps in real life:
Desired compensation is like setting a fair price for your time—it ensures you’re rewarded properly for what you bring to the table.
Technical Details
What It Is
Desired compensation refers to the total remuneration package an individual expects in exchange for their labor, skills, and expertise. It falls under the broader category of employment terms and is typically negotiated during hiring or performance reviews. Compensation can include monetary and non-monetary components, such as salary, bonuses, benefits, and equity.
How It Works
The mechanism of desired compensation involves a negotiation process between the employer and the candidate or employee. Employers assess market benchmarks, internal pay structures, and budget constraints, while candidates evaluate their skills, experience, and industry standards.
Technology used in this process includes:
Key Components
Desired compensation is typically composed of:
Common Use Cases
Desired compensation is relevant in scenarios such as: