What is indirect financial compensation? What are the three types ...

[joesmith1212]

What is indirect financial compensation? What are the three types of indirect financial compensation provided by most employers? Give examples of each type to illustrate your answer.
 
  What will be an ideal response?

Question 2

Which of the following is a job environment factor that is part of a total compensation package?
 
  A) sound policies
  B) working conditions
  C) congenial co-workers
  D) all of the above

[AngeliqueG]

Answer to Question 1

Answer: Indirect financial compensations (benefits) include all financial rewards not included in direct financial compensation. Legislation mandates some benefits, such as Social Security, unemployment insurance, and workers' compensation. Discretionary benefits are benefit payments made as a result of unilateral management decisions in nonunion firms and from labor-management negotiations in unionized firms. Major categories of discretionary benefits include payment for time not worked, health care, life insurance, retirement plans, employee stock option plans, and employee services. Voluntary benefits, on the other hand, are usually 100 percent paid by the employee but the employer typically pays the administrative cost. The most common voluntary products provided include term life insurance, vision insurance, long-term care insurance, long-term disability insurance, accident insurance, and dental insurance.

Answer to Question 2

Answer: D

[joesmith1212]

YES! Correct, THANKS for helping me on my review

[Joy Chen]

Thanks for the timely response, appreciate it