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The Four Major Types of Direct Compensation: Hourly, Salary, Commission, Bonuses. When asking about compensation, most people want to know about direct compensation, particularly base pay and variable pay. The four major types of direct compensation are hourly wages, salary, commission and bonuses.
Direct compensation tends to be one of the most common forms of compensation. It includes money paid to employees as cash, salaries, bonuses and commission. Both hourly rates and salaried work will fall under this category. Within direct compensation, there are two subcategories of base pay and variable pay.
Direct compensation tends to be one of the most common forms of compensation. It includes money paid to employees as cash, salaries, bonuses and commission. Both hourly rates and salaried work will fall under this category.
When you think about the word compensation, you might think it starts and stops at each employees paycheck. But the compensation definition goes beyond just salary. It includes all of the expenses you pay for each employee, like health insurance, commissions, travel allowances, and any other non-cash benefits.
Typically, compensation refers to monetary payment given to an individual in exchange for their services. In the workplace, compensation is what is earned by employees. It includes salary or wages in addition to commission and any incentives or perks that come with the given employees position.

People also ask

Here are the three most popular types of compensation packages and a few notes on who might be most attracted to them. Straight salary compensation. Salary plus commission compensation. Straight hourly compensation.
The Four Major Types of Direct Compensation: Hourly, Salary, Commission, Bonuses. When asking about compensation, most people want to know about direct compensation, particularly base pay and variable pay. The four major types of direct compensation are hourly wages, salary, commission and bonuses.
Compensation consists of a combination of an employees pay, vacation, health insurance, and bonuses. It also includes other perks, such as a company car, free parking, free or cheap meals, commuting costs, etc.
Compensation consists of a combination of an employees pay, vacation, health insurance, and bonuses. It also includes other perks, such as a company car, free parking, free or cheap meals, commuting costs, etc.
Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction.

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