Asked by: Puig Shainskyasked in category: General Last Updated: 27th May, 2020
What does direct compensation mean?
Consequently, what is an example of direct compensation?
Direct compensation is the money directly paid to employees in exchange for their labor. Direct compensation includes wages, salaries, bonuses, tips and commissions. For example, she may offer performance pay for each employee that meets his or her quarterly performance goals.
Additionally, what are the four types of compensation? Different types of compensation include:
- Base Pay.
- Overtime Pay.
- Bonuses, Profit Sharing, Merit Pay.
- Stock Options.
- Travel/Meal/Housing Allowance.
- Benefits including: dental, insurance, medical, vacation, leaves, retirement, taxes
Also Know, what are three examples of direct compensation?
These include meals, commissions, mobile phone expenses, travel expenses, club memberships, insurance, reduced interest loans, and more. Other direct compensation options include incentive pay linked to exceptional performance and occasional bonuses for special occasions.
What are direct and indirect benefits?
An indirect benefit is a return that cannot be directly observed but is nonetheless realized - as opposed to direct benefits like reduced headcount or increased sales that are more easily quantified.