Benefits, in the world of business, are types of non-wage compensation that employers provide their workers on top of their salaries or wages. They are extra incentives that companies, organizations, and other employers provide to attract and keep their staff. Benefits can help nurture a productive, happy, and loyal workforce.
The term may also refer to a payment made by the government (the state) to somebody who is entitled to receive it. This article focuses on the meaning of benefits in the context of employees in the workplace.
Employee benefits are additional incentives offered by employers beyond an individual’s regular salary or wages, aimed at promoting wellbeing and job satisfaction. Some of these, referred to as “core benefits”, are legally required. However, when skilled professionals are in high demand, employers often add extra perks, also called employee benefits or fringe benefits, to attract and retain talent
Common employee benefits
Here is a list of some of the most common employee benefits:
- Paid sick days, vacation days, and other time off.
- Dental insurance.
- Health insurance.
- Employee discounts.
- Gym discounts or memberships.
- Retirement benefits.
- Life insurance.
- Financial help for commuters.
- Childcare support.
- Dog-friendly offices.
- Paid tuition.
- Relocation assistance.
- Long- and short-term disability insurance.
- Wellness programs.
- Remote working or teleworking options.
- Flexible work schedules.
- Free or subsidized meals.
- Performance bonuses.
- Profit sharing.
- Paid maternal and paternal leave.
- Stock options or equity.
- Team bonding events.
- Parent rooms.
- Games rooms.
- Paid sabbaticals.
Employee benefits are important
Your workforce is vital to your company’s ability to grow sustainably and thrive. The right mix of benefits can significantly help your business achieve its goals and objectives. Your goal is where you want your company to be on a certain date in the future, while your objective is a description of how to get there.
Helping employees save money and stretch their earnings is highly effective. Popular options include childcare schemes, which often see high uptake, and commuting programs that can significantly reduce travel expenses — especially as fuel costs rise. Many employees also benefit from savings on everyday shopping, which can accumulate into substantial long-term savings.