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Difference between direct, indirect and non-financial compensation By definition, compensation can be understood as total amount of the monetary and non-monetary reimbursement provided to an individual in return for labour. Mar 20, · This page last updated on March 20, Content Manager: [email protected] Technical Issues: E-mail OER Webmaster.
Direct compensation is an employee's base wage. It can be an annual salary, bonus pay, holiday pay, hourly wage or any performance-based pay that an employee receives, such as profit-sharing bonuses.
b. Inbound Logistics' glossary of transportation, logistics, supply chain, and international trade terms can help you navigate through confusion and get to the meaning behind industry jargon. Difference between direct and indirect compensation Bogardus, () states that directcompensation is remuneration of employees in monetary terms for the services they give to the organisation.
The monetary benefits could be in the form of basic salary, allowances such as house rent, travel, medical covers, bonuses and tips.Differences between direct and indirect compensation