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.