Which term describes compensation that is neither direct salary nor wage?

The term that describes compensation that is neither direct salary nor wage is indirect compensation. This type of compensation includes non-monetary benefits and perks provided to employees, such as health insurance, retirement plans, paid time off, and other fringe benefits. Indirect compensation plays a crucial role in attracting and retaining talent, as it enhances an employee's total rewards package beyond just their salary or hourly wage.

Understanding indirect compensation is vital in the realm of human resource management, as it contributes significantly to employee satisfaction and engagement. It reflects an organization's commitment to employee welfare and can influence an employee's overall perception of their job and employer. In contrast, direct compensation only focuses on the monetary aspects of a job, such as base salary and hourly pay, without taking into account the comprehensive benefits that employees receive.