Question

4 - employee compensation and benefits

learning objective: identify the different types of compensation and benefits in the workplace.

which of the following most accurately describes indirect compensation?

a.) sales commission
b.) part-time hourly wage
c.) cash holiday bonus
d.) health insurance provided by the employer

Explanation:

Define compensation types

In Human Resource Management, employee compensation is divided into direct and indirect forms. Direct compensation includes direct monetary payments.

Analyze direct compensation

Sales commissions, hourly wages, and cash bonuses are direct financial payments given to employees for their labor.

Analyze indirect compensation

Indirect compensation refers to non-monetary benefits given to employees. These benefits have financial value but are not paid directly as cash.

Evaluate the options

Health insurance is a non-cash benefit provided by the employer, making it a form of indirect compensation.

Answer:

• a.) Sales commission
• b.) Part-time hourly wage
• c.) Cash holiday bonus
• d.) Health insurance provided by the employer (Correct answer)