Asked by josely miranda on Jun 18, 2024
Verified
Competitive pressure may force some firms to provide indirect pay.
Competitive Pressure
The influence and constraints exerted by competition within a market, which force companies to continuously improve.
Indirect Pay
Employee compensation that includes non-monetary benefits such as health insurance, retirement plans, and paid time off, rather than direct cash payments.
- Understand the benefits and drawbacks of direct and indirect compensation elements.
Verified Answer
AM
Alejandra MartinezJun 18, 2024
Final Answer :
True
Explanation :
In order to attract and retain talent, firms may offer indirect pay or benefits such as health insurance, retirement plans, and employee discounts. This is often done in response to competitive pressure from other firms who also offer such benefits to their employees.
Learning Objectives
- Understand the benefits and drawbacks of direct and indirect compensation elements.
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