The term fringe benefits refers to any benefits, an employee can receive besides the regular wages or salary. It also covers any monetary gifts or items that an employee can receive. These are normally referred to in contracts as “perks and benefits”. The main fringe benefits covered by most employment contracts are health, accident, vision, dental, life, and group coverage. Other fringe benefits may be legally mandated by federal, state or city regulations.
Employee benefits in the form include different kinds of non-wage or low-waged compensation given to employees as well as their regular wages or salaries. In instances where an employee trades wages for some form of fringe benefit, is usually referred to as “salary packaging”. This happens when an employer pays an employee a certain wage for an option contract or a skill training program. Other examples of fringe benefits paid to employees are vacation pay, expense insurance, meal allowances, subsidized business lunches, and medical insurance.
Although this is a very broad topic, there are many different types of employee benefits available today. Most companies have a wide variety of benefits offered to all employees. However, there are many small, independent companies who specialize in particular benefits. Some of these companies include:
One of the best ways to keep employees loyal and happy in today’s fast-paced business environment is through providing them with employee benefits such as retirement plans, medical benefits, life insurance, and outstanding employee discounts, etc. Another fringe benefit for employers is providing their employees with educational assistance and professional development programs. The last few years have seen a significant growth in the number of companies offering these types of assistance to their employees. Many companies also incorporate these into their employee compensation packages, thus saving employers the need to pay for these separately.
It is important that employees understand what fringe benefits are and what exactly they mean to the employer. Most companies will not advertise these perks and often try to keep them a secret. This can actually work to the advantage of employees because it forces the employer to stand behind every deal that is made. Fringe benefits can help you develop a strong package that includes employee discounts, retirement benefits, and educational assistance, amongst others.
When it comes to making decisions about what fringe benefits to provide your employees, take the time to research each option. Know how long the plan has been in place, if it is a newly formed company, and your overall goals. Always consider your employees’ opinions when making decisions. Never assume that a majority will like specific fringe benefits plan, but try to listen to everyone’s needs and preferences.