MHR 523 Chapter 10: Chapter 10 Textbook Notes.docx

• School: Ryerson University
• Department: Human Resources
• Course: MHR 523
• Professor: Pat Sniderman

Document Summary

Employee benefits and services pay is called direct compensation because it is based on critical job factors/ performance benefits and services = indirect compensation because they are usually extended as a condition of employment and are not directly related to performance. These include societal, organizational and employee objectives societal objective: benefits solve social problems and provide security for interdependent wage earners benefits and services give many employees financial security against illness, disability and retirement organizational objective: if a company did not offer retirement plans and paid vacations, ppl don"t want to work for them if not offered, employees might join to form a union and collectively bargain with the employer indirect compensation may do the following: reduce fatigue, discourage labour unrest, satisfy employee objectives, aid recruitment, reduce turnover, minimize ovetime costs employee objectives employees seek employer provided benefits and services because of lower cost and availability you only have to pay half a dental service for example.