Briefly discuss the advantages and disadvantages of using indirect pay.

The possible advantages of indirect pay are that it can help attract employees,can match conditions at unionized firms,receives favourable tax treatment,has economies of scale in purchasing,can provide valued rewards for little or no cash outlay,can provide employee peace of mind,can help the employer deal humanely with employees,may help promote company products,and may support managerial strategy.The possible disadvantages are benefits costs,rigidity of costs,difficulty in developing an efficient package,costly communication and administration,inability to motivate task behaviour,the possibility of causing excessive employee stability,and poorly designed plans may cause undesirable employee behaviour.