Which of the following is an indirect monetary compensation given to the employee?
Indirect compensation includes non-monetary benefits provided to workers, such as pension funds, mobile phones, company cars, health and life insurance, overtime pay, and annual leave. In fact, it includes everything from legally obligated health insurance to social security, child care, and more. It is essential to understand that employers can include standard
contractual, non-monetary features covering annual leave, as well as valuable benefits such as healthcare, in indirect compensation. Indirect compensation differs from direct compensation, which is monetary compensation paid directly to employees for their services, starting with their salary. Instead of being paid directly to an employee, indirect compensation is calculated as an extra component of the base salary. Legal Disclaimer The content on our website is only meant to provide general information and is not legal advice. We make our best efforts to make sure the
information is accurate, but we cannot guarantee it. Do not rely on the content as legal advice. For assistance with legal problems or for a legal inquiry please contact you attorney. Indirect compensation is a type of remuneration that typically encompasses non-monetary forms of payment. Direct compensation includes base pay, bonuses, commission, and incentives. Indirect compensation includes paid time off and overtime pay, as well as
benefits that have financial value, but no cash value, such as:
Except for government-mandated benefits, organizations can choose which forms of indirect compensation to incorporate. Why should HR leaders care about indirect compensation?Understanding indirect compensation is essential for HR leaders. During the hiring process, candidates will want to know what the indirect compensation package includes and how the employer plans to deliver it. During salary and performance reviews, people will likely want to check that they receive their indirect compensation and that it’s easily accessible. Indirect compensation is integral to:
What can HR leaders do to successfully build an indirect compensation program?Haphazardly compiling an assortment of potentially helpful benefits is not going to cut it. Instead, HR leaders can incorporate these practices to build an indirect compensation plan that will support an engaged workforce:
How can a successful indirect compensation program improve company culture?Indirect compensation is a fundamental component of the overall compensation plan. By offering attractive and pertinent indirect compensation options, companies can nurture a culture that values its people. When people feel that their organization appreciates through prioritizing their wellbeing, they’ll more readily bring dedication, loyalty, and enthusiasm to their work community. Which of the following is a indirect compensation?Examples of an indirect compensation arrangement include offering your employees health insurance, life insurance, or employee stipends (also called fringe benefits). Social Security, sick leave, a retirement plan, and paid time off (PTO) are also examples of indirect compensation.
Are indirect and nonWhile indirect compensation can provide some monetary value like paid vacation and holidays, it's subtle (hence, indirect) because it's not included in the employee's regular pay. Non-financial compensation is also an indirect form of compensation that provides emotional over monetary value.
What is indirect payment?Indirect Payment means the buyer pays the seller in cash or via non-cash means of payment via a third party at the request of the seller or when the buyer requests a third party to represent the buyer to pay the seller or via offsetting of liabilities between both parties.
What is indirect compensation quizlet?Indirect Compensation. Extrinsic. Benefits and services provided to employees based on membership in the organization.
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