Indirect Compensation

What is Indirect Compensation?

 

‘Indirect Compensation’ refers to all the non-monetary benefits provided to an employee. It can include everything from additional benefits to long-term pension funds.

 

Also termed as ‘casual employee benefits, these benefits can be provided to the employee in different ways. Some of the common examples of indirect compensation include phone and internet services, laptop, company car, health insurance, annual holiday packages, gym memberships, etc.

 

They help in making the employee feel valued, thereby increasing their loyalty towards the company as well as helping in encouraging their productivity and boost retention rates.
Indirect compensation also helps in employee engagement by making the employee understand that they are valued as well as making them realize that the company values their relationship with the individual.

More HR Terms

Sick Leave

What is Sick leave? Sick leave is a paid time off that every employee receives when they feel sick or unwell or need to speed

Satisficing

What is Satisficing?   ‘Satisficing’ is a neologism of ‘satisfy’ and ‘suffice’, which refers to a decision making process that aims to satisfy all parties

Contact Us

Contact Us

We use cookies on our website to provide you with the best experience.
Take a look at our ‘privacy policy’