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Indirect compensation

Non-monetary benefits, also known as indirect compensation, are a method by which businesses can reward employees for their services and boost engagement without adjusting base salary. Many businesses incorporate these benefits into total compensation packages. Total compensation includes both indirect and financial compensation

While there are many types of indirect compensation, the term essentially encompasses any perks or benefits not paid directly to employees. In recent years, more and more employers have discovered the importance of indirect compensation in attracting and retaining quality employees. Common forms of indirect compensation offered to employees include:

  • Health insurance
  • Life insurance
  • Retirement plans
  • Pension plans
  • Stock options
  • Company cars and mobile phones
  • Extra paid time off
  • Child care options
  • Fitness programs
  • Relocation expenses
  • Training and education opportunities

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