- What is non-monetary compensation?
- What is an example of non-monetary compensation?
- How to negotiate for non-monetary compensation
- Key takeaways
Ever wonder how you can negotiate extra perks outside of your regular paycheck? Your ability to negotiate non-monetary compensation may be the key to a happier career. In this article, we don’t spare any details on how you can maximize these often underutilized benefits.
After a long job search, you finally have an offer in hand. In your excitement, you focus in on what’s important—the money. Who can blame you? After all, isn’t the point of working to pay our bills? But what if you left some valuable benefits on the table?
Non-monetary compensation can add to your overall health, mental wellness, and overall quality of life. But, if you don’t know what to ask for, you’ll likely miss out. According to a 2022 survey by Engine Insights, 85% of Americans who countered on salary, other compensation, or benefits, got at least some of what they asked for.
Don’t leave valuable perks on the table. Read on to learn all about:
What non-monetary compensation is and how it differs from monetary compensation
Popular non-monetary compensation examples
How to negotiate non-monetary compensation
What is non-monetary compensation?
Non-monetary compensation is the rewards, perks, or benefits employers offer their employees that fall outside of wages. Non-monetary compensation can be comprised of various benefits that employees receive from their employer outside of cash. This could include benefits such as health insurance, retirement plans, paid time off, gifts, or other non-cash perks.
The primary difference between monetary and non-monetary compensation is the form in which the rewards are provided. Monetary compensation includes base salary, wages, bonuses, commissions, overtime pay, and any other form of direct payment that is received as money.
Some benefits like Medicare, social security, workers’ compensation, and health coverage are required by law based on the size and location of the company. However, many employers voluntarily offer non-monetary compensation to attract and retain top talent while addressing the needs and preferences of their employees. They know extra benefits not only enhance the overall compensation package but contribute to employee satisfaction, morale, and retention.
What is an example of non-monetary compensation?
From flexible work arrangements and employee recognition programs to training and development opportunities, gifts, and discounts, there are endless options for non-monetary compensation. Some popular examples of non-monetary compensation include:
Paid Time Off (PTO). This enables employees to take time away from work while continuing to receive their regular salary or wages.
Healthcare benefits. Medical, dental, and/or vision coverage options that assist employees in accessing and affording healthcare services.
401(k). Tax-advantaged retirement savings plan, allowing employees to contribute a portion of their salary into the plan to save for retirement.
Pension. Retirement plan that provides regular income payments to individuals after they have retired from their employment.
Tuition reimbursement.Employers may repay a portion or the full cost of tuition and related educational expenses for courses or degrees.
Childcare benefits. Subsidies that assist employees in covering the costs of childcare services.
Company car. Access to vehicles for work-related purposes, such as business meetings, client visits, or transportation of goods.
Flex schedule. Alternative schedules that allow employees to adjust their work hours or locations to better suit their individual needs.
Training and development. Opportunities for employees to participate in educational opportunities to enhance their skills, improve their performance, or prepare for future career advancement.
Employee Assistance Programs (EAP). Access to counseling services and wellness programs that provide resources to employees to help them manage personal challenges.
Stock options and equity. For employees of publicly traded companies, stock options provide the right to purchase company stock at a specified price. Equity, usually in the form of shares or stock grants, represents ownership in the company.
Work-life balance initiatives. This could be flexible work arrangements, parental leave policies, on-site childcare services, or wellness programs.
Company perks. Include free or subsidized meals, gym memberships, or company-provided services or amenities.
There is no shortage of non-monetary compensation options for employees. Job seekers need to be aware of the possibilities when negotiating their compensation package.
How to negotiate for non-monetary compensation
When negotiating for non-monetary compensation make a list of the benefits that are most important to you. Research the benefits that are commonly offered in your industry and by your prospective employer.
Expert Tip
Although the negotiation for non-monetary benefits can occur during different stages of the hiring process, you have the most leverage once you've received a job offer but before you've accepted it.
Be specific about what you're asking for and explain how the non-monetary benefits you're requesting can benefit the employer as well. For example, if you're negotiating for professional development opportunities, mention how it will enhance your skills and contribute to your effectiveness in the role.
If the negotiation involves complex legal aspects, such as stock options or equity, it may be wise to consult with a legal expert or your HR department to ensure you fully understand the terms and implications.
Once you and the employer reach an agreement, ensure that the terms are documented in your offer letter or employment contract. This helps avoid misunderstandings later.
Keep in mind, when negotiating, employers may not agree to all your requests, so it's important to be open to compromise. Remember that successful negotiation requires a balance between advocating for your needs and being flexible and collaborative. Approaching the negotiation strategically can lead to a mutually beneficial agreement that includes the non-monetary benefits you value.
If you’re not sure how to assess your compensation package, our salary analyzer will show you how your offer compares to similar roles and provide recommendations on the next steps.
Key takeaways
Non-monetary compensation refers to rewards, perks, and benefits employees receive outside of wages or salaries.
When being offered a new job, consider the entire compensation package, including both monetary and non-monetary benefits.
When negotiating, make sure you do your research, identify your priorities, and be specific in your ask.
