Why is indirect compensation important to recruiting and retaining employees? (site 1)

Indirect compensations may encompass sales commisons, health, transport, accommodation allowances and so on which aren't included as part of their base salary.

Indirect compensations go a long way assisting employees in different aspects of their personal lives which may not be directly related to work.

A good indirect compensation which caters for transport, housing and medical expenditures seems way more beneficial than a huge base salary without allowances.

Also, indirect allowances such as commission encourages employees to put more effort into sales and marketing since it is based on percentage. Hence, the more they input, the more their earning.

Therefore, indirect allowances are of considerable benefit which is highly considered when choosing an employer.

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