What are non-monetary benefits provided to employees that carry a financial cost to the company, such as health insurance?

Non-monetary benefits that carry a financial cost to the company and enhance the overall compensation package for employees can be classified as perks. These benefits can include health insurance, retirement plans, paid time off, gym memberships, and other services or advantages that contribute to employees' well-being and job satisfaction without being direct salary payments.

Perks serve multiple purposes: they help attract and retain talent, boost morale, and enhance employee loyalty, all of which can lead to increased productivity. By providing these benefits, companies invest in their workforce's quality of life and job experience, fostering a positive corporate culture.

The other terms have distinct meanings in the context of employee compensation. Bonuses are typically one-time financial rewards given based on performance metrics or company profits, while incentives often refer to performance-related rewards that encourage specific behaviors—both are more focused on monetary compensation. Allowances usually refer to specific reimbursements for expenses incurred by employees, such as travel or meals, rather than broader employee benefits.