Knowing the differences between salary types gives the advantage to employers to better craft their offers to new workforce, to leverage the advantages of these differences to obtain leverage and employee satisfaction, to make the necessary changes if the business needs it and also to keep competitive industry specific salaries.

Direct HR costs are expenses that can be clearly linked to specific HR activities, such as salaries, benefits, and training. Conclusion: These costs are often the most significant part of an HR budget, but they are also the most straightforward to calculate and manage.