Which item is normally classified as an indirect form of compensation?
Correct answer: A. Employer-provided health insurance
- A. Employer-provided health insurance
- B. Basic wages paid for regular hours
- C. Commission earned on completed sales
- D. A cash payment for overtime work
Explanation
Indirect compensation consists of benefits provided in addition to direct pay, such as health insurance, pensions or paid leave. Wages, commissions and overtime payments are direct financial compensation.
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About Human Resources Basics
Human resource management plans an organisation's workforce and matches people with suitable jobs through recruitment, selection, induction and placement. It also covers training, performance appraisal, compensation, promotion, employee relations, workplace safety and the distinction between personnel administration and strategic human resource management.
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