Compensation and rewards are the two terms which are commonly used as synonyms but from an organizational perspective, these two terms are much different. For recruitment and retention, these two terms are equally important. It is because at the time if recruitment, the recruiters have to give the impression to the new candidates that they will be benefited if they joined the organization. This particular amount of benefits means rewards. Rewards mean the price from the side of the organization to the employees. It is generally given to encourage the employees for their good performance and good conduct with teammates and the hierarchy.