To compensate means to make up for something or to balance out a disadvantage. When a basketball team loses its best player to injury, the other players might compensate by working harder on defense and passing more carefully. If you miss a homework assignment, you might compensate by doing extra credit work to bring your grade back up.

The word also means to pay someone for their work or for a loss they've suffered. Companies compensate their employees with salaries and benefits. If a store accidentally ruins your jacket, they might compensate you by giving you a new one or refunding your money.

Think of compensation like a scale that's tipped to one side. Something needs to be added to the lighter side to restore balance. A student who struggles with spelling might compensate by reading more books to see words in context. A restaurant might compensate for slow service by offering a free dessert.

The noun form is compensation. Workers receive compensation for their labor. An athlete might need extra support from her other leg muscles when recovering from a knee injury. Compensation is whatever balances things out or makes things fair again.