The Importance of Fringe Benefits

Employees work hard to keep all parts of a business running smoothly, and they deserve only the best in return. That’s why many employers choose to pad their employees’ paychecks with additional advantages — also known as fringe benefits.

If you’re new to an industry or your business is unfamiliar with the specifics of fringe benefits, know that these extra perks are essential to your business. But what exactly are fringe benefits, and why does your organization need them?

What Are Fringe Benefits?

The standard definition of fringe benefits is any type of compensation provided outside of an employee’s normal wage or salary. These benefits can involve anything from health care coverage and vacation time to free meals and employee discounts.

Job laws and regulations have made some fringe benefits mandatory for industries and workforces, and a wide variety of employers choose to offer other optional perks to keep their teams happy and motivated.

Different Types of Fringe Benefits

Fringe benefits include all types of convenient financial opportunities, which can vary depending on the employer and industry. Most of them can fit into one of two main categories:

  • Essential benefits: Essential benefits include fringe benefits that are either required by law or extremely important for potential employees. For instance, employers in most places offer benefits such as health insurance, social security and unemployment insurance. While not all companies are required to offer health insurance, it could make a huge difference in the number of job candidates who accept positions at your business.
  • Non-essential benefits: While fringe benefits in the “non-essential” category may not be necessary, many business leaders provide them to help improve the lives and work of their employees. They can range from disability insurance, retirement plans and transportation to recreational facility memberships and holiday bonuses or gifts.

Why Offer Fringe Benefits to Your Employees?

The best employers often offer additional perks to their staff, and that matters more than you might think. While having a good salary is important, candidates consider benefits heavily when making decisions about jobs. According to a Glassdoor survey, nearly 80% of workers would rather have a job with more benefits than a job that pays more money.

Job seekers expect benefits like insurance, paid vacation time and other convenient perks to be included in their packages. Adding these helpful financial and wellness options does more than help satisfy your employees — it also shows them that you care about their well-being. If you’re willing to work with a staff member to find a plan that works for them, they’ll be more likely to accept a job offer and stay with the business longer.

Set up Fringe Benefits for Your Employees Today

Your business will be able to stay competitive in the job market and have more successful hires by supporting employees with better fringe benefits. To learn more about fringe benefits and related topics, subscribe to the Global Electronics Services blog and stay up to date on the latest industry trends.

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