Indirect Compensation

[ˌɪndəˈrɛkt | ˌkɑmpənˈseɪʃ(ə)n]

An indirect compensation involves extra benefits provided to an employee for work in a form other than regular remuneration. 

This may be health insurance, gym memberships, training and development opportunities, flexible working time and childcare funded by the organization. Organizations see indirect compensation as a strategy for employee retention; this is because it will make employees feel that their hard work is appreciated and noticed. Offering an indirect compensation also encourages productivity levels within the organization.


Part of speech:
Use in a sentence:
Offer an indirect compensation.
Indirect Compensation