WTF is Rewards or Compensation?

Did you know? Rewards and compensation are the same words in origination, although we do not use them to mean the same thing nowadays. The term "reward" comes from Middle English meed, mede ("reward, meed, recompense"). Shall we do some word-thinking? A reward can mean recognition for something good or something desired. However, the reward can also mean a more behavioural or primal, like the rewards system of humans where it creates certain behaviour. Something like an incentive.

Incentives and rewards are sometimes used interchangeably. However, rewards do not carry the intention of creating a desired behaviour as an incentive would mean. Incentive carries the intention and a future behaviour thinking where rewards might only mean simply a recognition of the past. However, let's admit we do create reward systems, like our biological evolution, to incentivise certain behaviours.

Compensation, on the other hand, is an exchange of value, from an entity(organisation) to an individual. Such as salaries, bonuses, commissions, profit sharing, stock options, and various forms of benefits.

Compensation is usually based on information such as job duties, experience, and performance. It is usually predetermined and depends on the employer's expectations. Rewards, on the other hand, are less structured and can range from small rewards like verbal praises to larger rewards such as bonuses, gym memberships, and points.

Such is the current perception or rewards and compensation. But how did we get here?