Compensation Management | Non-Monetary Employee Benefits and Services

Compensation Management | Non-Monetary employee Benefits and Services

Any benefits & services that the employee gets - besides the direct remuneration, is simply known as employee Benefits and Services. However, it is not mandatorily related to employee performance rather indirect compensation. Usually, employee benefits & services are offered more as a condition of employment only.

Practically every organization ought to provide benefits and services to its employees. Why because, it is largely believed that, indirect remuneration or compensation seems to have a strong power of motivation more than the direct pays.

Also, Read- How to offer competitive compensation to employees

Then again, any increase in employee direct pays may impact both employees and employers negatively too – it can add to employee’s taxable income and it may boost the monthly fixed salary/payroll cost of employers which is less in case of indirect compensation.