What does non-cash compensation encompass?

Non-cash compensation refers to benefits and compensation provided to employees that do not involve direct cash payments. This encompasses various forms of compensation that can significantly contribute to an employee's overall remuneration package, such as health insurance, retirement contributions, and other fringe benefits.

Legal assistance and health insurance are clear examples of non-cash compensation. They provide value to employees by supporting their well-being and helping them manage potential legal issues without financial expenditure. This aspect of non-cash compensation is crucial as it enhances employee satisfaction and retention without impacting the company's cash flow directly.

Other choices focus on forms of compensation that either provide direct cash payments (like bonuses and hourly wages) or relate to salary adjustments and job responsibilities, which do not fit the definition of non-cash compensation. Therefore, the selection of legal assistance and health insurance accurately represents non-cash benefits that contribute to employee welfare and HR management strategies.