What are Fringe Benefits
Fringe benefits are a means of compensating an employee for services other than the wages or salaries they receive from their job. They are legal, economic or social advantages enjoyed by employees that are not considered simple forms of compensation. Common examples of fringe benefits are vacations, health and disability insurance, pension plans, flex-time and stock options.
Examples of Common Fringe Benefits
When it comes to fringe benefits there are a number of options dependant on the company and its employees.
Vacations and holidays – Paid vacations and allowed time off for holidays and other special occasions are considered a form of fringe benefit as is personal time off.
Health insurance – Many companies offer a variety of health insurance packages to their employees, which can range from regular health and dental to vision coverage.
Disability insurance – Working in the US? If a worker is injured or becomes disabled, they may be entitled to receive a percentage of their wages due to the coverage provided by their employer.
Retirement plans – Many employers provide retirement plans such as 401(k)s, IRAs and pension schemes to their employees, allowing them to save for their future.
Flexible working and telecommuting – To meet the demands of the modern worker and job market, more companies are offering flexible and teleworking options such as compressed work weeks, flexible start and end times, and home-working.
Other benefits – These can include professional development and continuing education packages, free or subsidized meals and gym memberships, and subsidized travel services.
Benefits of Fringe Benefits
Having a comprehensive fringe benefits package in addition to competitive wages is a great way to show employees that their workplace values them and wants to keep them happy and employed. Offering good fringe benefits can also help to make a job more attractive to potential candidates and can help to retain and motivate existing staff.
No matter what type of organization you are part of, providing the right types of fringe benefits can be beneficial in many ways. Not only can they increase job satisfaction, but they can also make workers more productive and provide the company with a competitive edge when recruiting new employees.
In Summary
Fringe benefits are a form of compensation given to employees in addition to their regular wages. These can include paid vacation, health and disability insurances, pension plans, flexible working, and more. Companies often offer these as they can create a greater sense of job satisfaction, motivate staff and make a job more attractive to potential candidates.