What are different types of remuneration?

Although a number of specific forms are available, there are basically two main types of rewards that include direct and indirect. Direct reward usually concerns any compensation that comes as a direct financial profit for employees, including salary, travel allowances and other activities and bonuses. There are also indirect types of remuneration that give someone an advantage, but may be less simple. They may include overtime reward potentials, retirement benefits, and more flexible plans for employees. Many of these techniques fall into one of the two basic categories: direct and indirect reward. One of the simplest and most common types or remuneration is the salary that is paid to the employee for his work. This is a direct Compensation that provides employees with a basic breakup of their work, allowing them to recognize that they will be rewarded with a financial profit.

Direct forms may also include bonuses that employees can receive for particularly impressive performance. These types of rewards are not always available, unlike salary, and are usually used as a method of motivation for greater performance. Not only does it give employees a direct example of a reward for their work, but it shows others that they can be able to get such a compensation for increased efforts. Companies can also provide contributions to employees such as a financial scholarship provided by an employee traveling on behalf of his company.

There are also some types of rewards that are indirect, which means that they do not always provide an obvious monetary for employees. For example, overtime reward is certainly a direct form, but the opportunity for such a payment is indirect because it is not necessarily paid. Many employees can find a working environment more rewarding with knowing that further effort and overtime work can be compensated in a direct way, even if they do not use it.

pension benefits and flexiblePlans are also indirect types of remuneration. Companies that offer pension benefits often do in a manner that does not directly provide employees with money profit, but which will find value in the long run and eventually pay off. Flexible timetables do not pay employees with additional money, because for working in unusual hours they do not necessarily be paid more. However, these schedules can allow employees to work more rewarding the number of hours and often give employees a sense of value.