Though it is important to pay employees what they are worth, there are also times when employees would rather receive fringe benefits or “perks” in lieu of a higher salary.
This form of non-wage compensation is a great addition to your employee’s normal salary and best of all, most of these benefits are deductible by the company and non-taxable for the employee.
Quick Fact: Did you know the term “fringe benefits” was first used during World War II by the War Labor Board? When wage increases were prohibited, the War Labor Board called the indirect benefits that attracted and retained employees, fringe benefits.
Fringe benefits encourage employee retention, company loyalty, and higher employee satisfaction.
Most fringe benefits are tax-deductible for a company, but depending on the size of the company, some fringe benefits could cause financial hardship to a smaller business. With the number of fringe benefits available, each company can make the best decision what benefits are best for their business and employees.
Related: 36 Ways Leaders Motivate Their Employees
Basic perks such as health, dental, and vision benefits could be offered to all employees. Businesses can be selective in rewarding the company’s senior employees or best performers with achievement rewards, cash rewards, company paid cell phones, or the use of a company paid vehicle for personal use. Small businesses can also offer employees unpaid vacation time, job sharing, and flexible work hours that still add to the happiness of the employee without an outlay from the employer.
30 Fringe Benefits that keep your employees happy
- Health insurance
- Term life insurance
- Disability income protection
- Retirement plan
- Prescription plan
- Vision plan
- Dental plan
- Flexible spending account
- Legal assistance plan
- Stock options
- Profit sharing
- Holiday pay
- Sick pay
- Vacation time (paid or unpaid)
- Education reimbursement
- Maternity leave (mother & father)
- Adoption assistance
- Childcare reimbursement
- Relocation reimbursement
- Wellness programs
- Athletic or Gym memberships
- Employee discounts at hotels, theaters, sporting events, theme parks, etc.
- Meal allowance
- Employer-provided cell phones
- Commuting benefits
- Employer paid housing
- Personal use of a company owned vehicle
- Achievement awards
- Contests with prizes
- Gift cards or cash equivalents
Do you think offering fringe benefits in lieu of a higher salary is what employees want?
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