Indirect Compensation


Indirect compensation, also known as employee benefits, takes many forms, including company cars, pension funds, health insurance, and more. Many types of indirect compensation are provided to employees to create loyalty, encourage productivity, and increase retention rates. Some are required by law to be offered to all employees if offered at all, such as child care and insurance. Indirect compensation provides extra value to a compensation package and may be a deciding factor in choosing one job over another.

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Increasingly, organizations are using indirect compensation to boost their offering for potential new hires.
Indirect Compensation