Asked by Neala Kelly on Jun 14, 2024
Verified
Briefly discuss the advantages and disadvantages of using indirect pay.
Indirect Pay
Compensation that is not directly paid as wages to employees but includes benefits such as health insurance, retirement plans, and paid time off.
Advantages and Disadvantages
The pros and cons associated with a particular decision, action, or proposition, weighing benefits against potential drawbacks.
- Acquire knowledge of the concept and implementation of indirect remuneration.
Verified Answer
KZ
Katerina ZizisJun 19, 2024
Final Answer :
The possible advantages of indirect pay are that it can help attract employees,can match conditions at unionized firms,receives favourable tax treatment,has economies of scale in purchasing,can provide valued rewards for little or no cash outlay,can provide employee peace of mind,can help the employer deal humanely with employees,may help promote company products,and may support managerial strategy.The possible disadvantages are benefits costs,rigidity of costs,difficulty in developing an efficient package,costly communication and administration,inability to motivate task behaviour,the possibility of causing excessive employee stability,and poorly designed plans may cause undesirable employee behaviour.
Learning Objectives
- Acquire knowledge of the concept and implementation of indirect remuneration.
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