What are benefits? Definition and Examples
Benefits (/ˈben.ə.fɪtS/), 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.
Reed.co.uk says the following about the term:
“Employee benefits are extra incentives provided by employers, in addition to a worker’s normal salary or wages. They’re designed to help promote employee satisfaction and wellbeing.”
Some benefits are legal requirements. We call them ‘core benefits.’ However, when certain skilled individuals are in short supply, employers usually add extra benefits. We also refer to them as perks, employee benefits, or fringe benefits.
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. In other words, your goal is your destination and your objective is a description of the journey. According to an article by Taylor Benefits, benefits is one of the biggest perks professionals look for when they’re out job hunting.
EmployeeBenefits.co.uk makes the following comment:
“If you can save employees money and make their pay go further, you’re on to a winner. Childcare schemes are often the most popular and commuting schemes can cut costs for employees significantly, particularly as fuel prices increase.”
“Many employees make savings on their weekly shop with employee benefits which can lead to big savings in the long run.”