Indirect Compensation

Indirect compensation refers to the various forms of non-monetary pay offered to employees, that can include everything from common contractual features to useful, attractive benefits.
Casually called “employee benefits,” companies commonly offer employees indirect compensation in a variety of different ways. See this list of indirect compensation examples:
  • Pension funds
  • Cell phones
  • Company cars
  • Health insurance
  • Life insurance
  • Overtime pay
  • Annual leave
  • Childcare
Many forms of indirect compensation (i.e. pension, company car, cell phones, etc.) are given to employees with the intent to build loyalty, encourage productivity, and boost retention rates. Things like health insurance and child care, on the other hand, are benefits companies are required by law to offer to all employees in a category if they offer them to any.