Worker fringe benefits and perks in the form include different forms of non-wage compensation offered to workers as well as their regular salaries or wages. Instances where the individual trades wages for any other form of advantage is commonly referred to as a “pay premium.” Typical forms of such advantages include medical benefits, insurance, paid time off, paid vacation, paid relocation, paid time off for completion of certain projects, paid holidays, paid parental leave and paid retirement benefits. Sometimes companies pay employees for all of these in one lump sum. This is usually the case when the company offers a large cash incentive to employees or when the company has an established policy of giving out freebies to its workers on particular occasions.
There are many ways in which fringe benefits can be defined. In general, however, they can be grouped into two main categories. One category is that between financial advantages and other non-financial advantages. Financial advantages include things like free food, free tickets to events, free housing accommodations and so on. Non-financial advantages include things like dental care, free training, childcare and so on.
These fringe benefits are normally associated with a company. But in the last few years, they have been extended to employees or, more recently, to all workers. Companies have started offering them to employees as a perk or as a reward for certain performance. They are also sometimes used to attract and retain certain workers, as well as to entice new ones.
When deciding whether to offer any fringe benefits to its employees, it is important to consider the kind of advantages they would provide. The type of advantage – if any – that an employee would get from such a package depends largely on the kind of position the person holds. It would be unwise, for example, to give any employee a retirement package if his duties consist of very temporary assignments. The same would go for a company offering any kind of health benefits if most of the employees work outside the office and if the benefits package does not include travel expenses.
There are two main ways to determine whether an employee should be given a fringe benefits package. The first way is to evaluate the job performance of the person in question. The second is to look at the economic value of the fringe benefits. The value refers to how much an employee will get to enjoy once he or she receives the package. The two values can then be compared to determine if giving the fringe benefits is worthwhile for the company.
Once the decision has been made, the employer still has some options to offer employees who may be interested in the benefits package. Most employers these days offer health and dental benefits as part of the basic package. They may also want to include vision benefits, hearing aids, pet services and life insurance in the package. However, they may have the option to provide a choice of the types of fringe benefits they want their employees to receive.