In today’s competitive labor market, salary alone no longer seals the deal.
Indirect compensation refers to the non-salary elements of a total rewards package , things like health insurance, equity, retirement plans, paid leave, flexible working policies, and even perks like wellness stipends or learning budgets. These elements might not show up on a pay stub, but they heavily influence both how attractive your offer is and how long your people stay.
For globally distributed teams, getting indirect compensation right is even more complex , and more critical. Local legal requirements, cultural expectations, and competitive benchmarks vary widely. Ignore them, and you risk not just losing top candidates, but damaging your employer brand.
According to recent studies, 60% of employees say benefits are a key factor when deciding whether to accept a job, and 78% are more likely to stay with an employer who offers meaningful benefits.
So if you’re focused only on salary, you may be overlooking the very levers that build loyalty and drive hiring success.
Why Indirect Compensation Matters for Hiring
Attracting top talent has never been more complex , or more global. Job seekers are evaluating employers not just on compensation, but on the quality, flexibility, and relevance of the total package offered.
Here’s why indirect compensation matters at the recruiting stage:
- Top candidates compare total rewards , not just base salary , especially in tech, professional services, and remote-first industries.
- Benefits signal company values. For example, strong parental leave tells candidates you value work-life balance. Wellness budgets suggest you care about long-term wellbeing.
- Differentiation in competitive markets. When roles and salaries are comparable, indirect compensation becomes the deciding factor.
- Global expectations vary. A benefits package that works in the US may fall flat in Germany, Brazil, or Singapore , and top candidates know it.
Example: A candidate in France may expect employer-sponsored health insurance and meal vouchers as a baseline. In the U.S., a 401(k) match and mental health coverage could be essential.
Failing to localize or enhance your indirect compensation offer can result in high-quality candidates dropping off late in the process , or never applying at all.
Why Indirect Compensation Matters for Retention
Bringing talented people on board is just the beginning, keeping them is where indirect compensation truly shines.
When your team feels genuinely cared for, not just paid, you build loyalty and connection. Think mental health support, skill-development budgets, or flexible schedules, these perks tell employees, “We value you as a whole person, not just as a worker.”
Here’s what the data shows:
- Benefits drive loyalty. A 2024 survey from Intuit QuickBooks and Allstate Health Solutions found that a staggering 78% of employees said they’d consider a new job if their benefits were lacking. Pay isn’t everything, benefits matter.
- Replacement is expensive. According to Gallup, losing an employee can cost between 50% and 200% of their annual pay (and even more for leadership roles). That’s a lot of money you could have kept and invested back into your team.
- A lot of people quit their jobs when they didn’t really have to. According to Gallup, more than half of them felt their boss or company could’ve done something to make them stay. It usually comes down to whether they felt supported, not just at work, but as people.
- Support doesn’t look the same everywhere. What matters in one country might not matter in another. In the U.S., for instance, mental health care might be the big thing. Somewhere else, maybe it’s more about flexible time off for family. The point is, when companies actually take the time to tailor their benefits to fit local needs, people notice. It shows respect, and that matters.
So no, benefits aren’t just some “nice-to-have” extra. When done right, they’re a real strategy. They help people feel seen, appreciated, and more likely to stick around long after the new hire excitement wears off.
The Real Cost of Getting Benefits Wrong
Skipping over indirect compensation, or getting it wrong, doesn’t just make for a lackluster offer letter. It can quietly wear down your company from the inside out. Teams get frustrated, legal issues pop up, and suddenly, what looked like a simple oversight turns into a serious problem, especially if you're hiring globally.
You could run into legal trouble
Every country has its own rules about what you have to offer, like pensions in the UK or minimum time off in Brazil. Miss something, even by accident, and you might end up with fines or legal headaches. In 2023, a few U.S. companies in Germany learned this the hard way, they owed back pay because their remote work benefits didn’t meet local labor standards. Not malicious, just expensive mistakes.
HR ends up drowning in admin
If your benefits aren’t set up well, your HR team spends more time sorting through documents and answering policy questions than actually helping your people grow. That’s time better spent on culture, leadership, and planning for the future.
Employees check out
When people don’t see benefits that make sense for their lives, or when they hear coworkers in other countries are getting more support, it starts to wear on them. Motivation drops. Team spirit takes a hit. And yeah, it shows up in those not-so-great online reviews.
Your employer brand takes a hit
Word gets around. Whether it’s in exit interviews, LinkedIn posts, or Glassdoor comments, if your benefits don’t measure up, people notice, and they talk. That can make it harder to attract great talent down the line.
What Omnipresent Actually Does for You
Trying to manage benefits and compliance across different countries? It's no small task. Between staying on top of laws, cultural expectations, and just handling the day-to-day admin, it can get overwhelming fast. Most companies want to get it right, but don’t always have the time or resources.
That’s where Omnipresent comes in.
We become the employer on paper, handling hiring, payroll, and support for your international team. You still call the shots, but we handle the behind-the-scenes stuff.
Benefits that actually make sense locally
We help your employees get what they really need in their country. In the UK, that might mean private health insurance. In the Philippines, maybe a 13th-month bonus. We make sure it fits, so you're not guessing.
We handle the legal red tape
No digging through labor codes or rushing to meet deadlines. Our systems are built to keep everything compliant from day one.
Your team isn’t drowning in admin
We take care of contracts, pay, benefits, everything that tends to slow your HR team down. They get time back to focus on culture, hiring, and people.
You see the full picture
One dashboard shows you who’s working where, what they’re earning, and what’s been filed. It’s all there when you need it.
You grow your business. We handle the complexity of making sure your global team is supported and legally covered.
