Final answer:
Profit sharing is a form of indirect pay that is part of a benefits package where employees receive a share of the company's profits, which can enhance productivity.
Step-by-step explanation:
From the options provided, profit sharing is a form of indirect pay. Indirect pay refers to compensation that is not directly paid out as cash to employees but is instead given in a form that benefits the employee in other financial ways. Profit sharing fits this definition because it is usually offered as a part of a benefits package where employees receive a portion of the company's profits, which aligns with the business ethos that sharing profits and earnings among employees can lead to improved productivity.
Employee perquisites such as health insurance or retirement plans, team bonuses, and lump sum merit increases can also be considered forms of indirect or supplemental pay. These benefits do not increase the employee's direct earnings but may contribute to their overall compensation and job satisfaction.