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What are Employee Benefits?
Home » Human Resources » Employee Benefits » What are Employee Benefits?Employee benefits are those non-cash extras that one enjoys in addition to a salary at a job. Benefits vary greatly from company to company, and might include health insurance, retirement benefits, vacation and sick leave, and more. (See below.) The company’s size, type, revenue base, location, and personal leadership choices affect the benefits the company offers.
Earning a salary alone often isn’t enough to keep an employee happy, bonded to the company, and financially viable. So companies offer benefits to stay competitive, retain employees, and help employees stay afloat financially. In fact, benefits can comprise about 40 percent of an employee’s total compensation package, in addition to a salary. Employee Benefits are big business, and a place company’s really shouldn’t skimp.
Perks, on the other hand, are benefits of a different sort: those smaller, more individual extras that make employees more comfortable and feel more special. For example, free soft drinks in the company kitchen, a company car, use of frequent-flier miles for personal use, and concierge services are considered perks outside of the normal realm of benefits.
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