Fringe Benefits – What They Are and How They Benefit Employers and Employees
Employee benefits and perks in sort include various forms of non-wages compensation offered to employees as well as their regular salaries or wages. In cases where the individual trades wages for any other form of bonus, however, is usually called a “payout bonus” or “payfor performance” agreement. It is believed that these agreements allow employers to circumvent the usual requirement that an employee has worked for the company for a certain number of months before receiving a wage or salary. The occurrence of this form of bonus agreement can vary greatly from one organization to another.
Many companies will offer employees who take on extra responsibilities additional fringe benefits. These often include travel discounts for work-related travel, gift certificates or even periodic payments. The amount of these bonuses that are given out also vary greatly depending on an organization’s policy. Many employers, for example, will give out more money during times of high accomplishment or when an employee has reached a new career level.
Sometimes employee benefits may be given out in the form of employee appreciation plaques or trophies that are awarded for various achievements. These trophies or plaques are often given for exceptional employee service. Sometimes, these awards are given for outstanding contributions to the business such as raising funds for a charity or for community service. These employee recognition awards are most often given to employees who have made a real difference in their businesses or to those who are considered leaders within their work environment. They may also be awarded for exceptional sales or employee support within the company.
Another fringe benefit that most employees appreciate is the availability of annual insurance coverage. This type of insurance is most often available through employer-sponsored group plans. However, there are also independent policies available which employees can purchase to insure themselves as well. Some of these policies cover all of the employee’s medical expenses and any other disability related items. In some cases, there are also options available which allow employees who are considered excessive health risks to purchase such insurance for themselves. Often, these excessive health risk policies are used by executive level employees.
Another fringe benefits that many employees enjoy is the availability of paid time off. There are many employers that recognize the need for their employees to take time off from work for personal reasons. These employers will pay for time off for a variety of reasons including vacation time, childbirth, depression and illness. Usually, this type of leave is paid for in full by the employee. However, there are some circumstances where an employee may be able to deduct a portion of their annual leave pay as fringe benefits.
With so many fringe benefits available, it is not surprising that more employers are adding these benefits to their employee benefits packages. The best way for an employer to determine the benefits that they should include in their package is to determine the needs of the employee. There are many fringe benefits that are designed to benefit both the employer and the employee. Before including any fringe benefits in the employee benefits package, an employer should carefully consider the benefits that the employee actually needs.