22 Jun
When you hiring for a job, it is essential to know the company’s complete compensation packages. Packages include both salary and fringe benefits(employee benefits).
The fringe benefits are essential factors that improve employee retention and job satisfaction, increasing employee productivity. However, a company needs to focus on fringe benefits, which will overcome the hiring and retention challenges faced by a company.
Various companies offers the best benefits. Companies with great benefits attract top talent and overcome challenges like the employee turnover Tsunami that most companies are facing now.
This article gives you an insight into the fringe benefits, their objective, and their types.
Table of Contents
What are fringe benefits?
Fringe benefits are those benefits and non-wage payments granted to employees by an employer or business. In other words, they are the additional benefits offered to an employee.
Employers will offer you benefits based on the company’s business nature. For example, If you work at a Hotel, you might be provided free accommodation and meals, or if you work at a gym center, you might be offered free exercise. or these may not be related to the nature of business like health insurance, conveyance benefit, educational assistance, etc.
Objective
There are certain objectives of fringe benefits
- Companies compensate fringe benefits to gear employees to job satisfaction.
- Employees benefits help companies to motivate, recruit, and high-quality employees
- It increases work productivity.
- Benefits improve the general quality of life, financial health, and family wellness.
- It significantly improves employee retention.
Examples
Some of the common fringe benefits
- Pension plans
- Health and accident benefits
- Profit-sharing programs.
- Free breakfast and lunch
- Transport benefits
- Retirement planning services
- Childcare
- Education assistance
- Employer-provided cell phone
- Health saving accounts (HSA)
- Childcare reimbursement
- Company-owned vehicles
Less common benefits are:
- Paid vacation
- Meal subsidization
- Commuter benefits
- Unemployment insurance plan
Fringe benefits and job satisfaction
Fringe/employees benefits might increase job satisfaction and decrease the chances of job mobility and turnover. For example, if an employee is on paid vacation, It boosts the feeling of satisfaction.
If an employee needs health insurance and the company is not providing health benefits, job dissatisfaction occurs. Furthermore, to prevent dissatisfaction, companies should offer fringe benefits that employees are interested in.
How fringe benefits work
A company provides various benefits to the employees. It is essential to give a chance to employees to select a fringe benefit while in the recruitment process, whether they are interested in the company car, educational and financial assistance, or health insurance.
On the other hand, fringe benefits are provided to employees to ensure their comfort in the workplace, and it also helps companies stand out for talented and potential employees. It also allows companies to stand out from their competitors.
Final thoughts
Summing up the above article, the fringe benefits serve as additional compensation. They increase the employees’ performance. Moreover, providing unique benefits help companies stand out from competitors.
Content writer at Invyce.com
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