Compensation used to mean only cash in hand. However, today it includes lifestyle perks that amount to 16% of the total compensation package. And some surveys push it upwards of 25%. The difference in these numbers can be accounted for by the variety of benefits offered by employers.

These perks include time off, sick days, medical plans, vacation pay, and pension plans. Usually an employer does not include healthy and safe work environments, or great cafeterias in their list of perks.

The composition of cash pay is also changing. Employers are now offering one-time payments which boost the salary of its employees. This is called variable compensation. Other methods include bonuses, profit sharing, stock options, productivity payments, and performance rewards.

These one-time payments are tied to the success of the company and are not used in computing raises. Also, by using these "boosters" the base salary is not increased.

Benefits have been around a long time and companies worry that they are not being given enough credit for them. Employers are working to find solutions that are good for both the company and the employee. Some have developed "cafeteria plans" in which employees are given a menu of benefits to choose from and can sign up for only those they feel they will use. For an employee with a family, for example, more medical coverage may be needed than for a single employee.