Direct compensation is the money a company gives to employees in return for their work. Financial benefits like house rent, basic salary, conveyance, medical reimbursements, leave travel allowance, special allowances, gratuity, and bonuses. The purpose of communicating a total compensation package to employees is to help them understand the full value of the job you’re offering. Direct and indirect compensation, when combined, help workers stay motivated and satisfied. This ensures improved performance and retention.
Types of direct compensation