An employer has a lot of responsibilities at work apart from just team performance and the growth of business. Several factors like productivity, work environment and work culture need to be taken care of in every organization and for that the best solution is to provide fringe benefits to employees.
What are fringe benefits?
Employee fringe benefits are simply the additional benefits which are offered to an employee from an employer other than just their fixed salary for delivering their tasks. These fringe benefits are provided for social security purposes. Some of the fringe benefits are directly provided according to the law, while some other benefits are provided by an employer, depending on their choice which are voluntary fringe benefits.
Here are some examples of fringe benefits provided to employees:
How Employee Fringe Benefits Work
Fringe benefits vary from company to company depending on the choice of an employer to provide the kind of benefits to employees he wishes for, apart from just the benefits required by the law. An employee is also given a chance to select the fringe benefits he is interested in at the time of recruitment.
Employee fringe benefits are commonly provided by an employer, even in the cases where an actual benefits provider is a third party. It is because the employer pays for the benefits which are provided to employees. An employee is the recipient of such benefits and the use can be extended to other family members.
Types of Fringe Benefits
Fringe benefits can be categorized into two categories. Here’s how:
Fringe benefits according to law
Some of the fringe benefits are mandatory to be provided to all the employees from an employer’s end for security and safety purposes. These benefits are intended for health and economy. Here are those benefits listed below:
Fringe benefits provided by an employer voluntarily
The following benefits are provided as per employer’s choice. Examples of these fringe benefits include:
- Disability insurance
- Paid holidays
- Education reduction
- Retirement planning services
- Life insurance
- Paid time off
- Commuter benefits
- Achievement awards
- Fitness training
- Employee discounts
- Meal plans
Advantages and Importance of Fringe Benefits
- Helps retain talent: Not only the aim of providing fringe benefits to employees is to ensure their comfort at the workplace, but also to be able to retain the top employees with the best talent at the same time by attracting them with such benefits and the employees can receive these benefits as additional compensation apart from salary.
- Helps the company stand above: Providing valuable and unique fringe benefits to employees helps the company stand above its competitors at the same time with a highly-skilled team.
- Attracts the public: Companies that offer additional benefits to their employees apart from salary, often stand above their competitors and makes the image of the company very attractive to different stakeholders, job seekers, investors which can even motivate them to support such kind of company which makes providing employee benefits a priority. Fringe benefits help a company get recognized fast and better.
- Employee wellness: Companies can face a major loss when its employees are not keeping well especially in terms of health and wellness. With fringe benefits like comprehensive healthcare plan provided to employees, they can make sure that their employees get all the healthcare facilities time to time and take care of their health to boost their productivity and performance.
- Employee engagement: Employees definitely work harder for a company they are working in when their employer provides them additional benefits apart from fixed salary every month. Additional benefits like healthcare plan, holidays, meals and treats, paid time off, virtual games etc. An employee can feel like a family in the company and work with full dedication without any blues. That’s how a combination of salary and fringe benefits help increase employee engagement.
The Bottom Line
Employee fringe benefits are not only useful for an employee but equally beneficial for an employer to give an energizing kick-start to their business every single day by ensuring employees health and wellness, morale, productivity, engagement and other important factors needed for any organization to grow.
Fringe benefits that are required by the law are mandatory, however, a smart employer will always provide some additional benefits to their employees for a healthy and strong team and for that Onsurity’s healthcare membership is the best choice for every employer.
Onsurity provides affordable, accessible and comprehensive healthcare plan for SMEs, startups and growing businesses. Onsurity’s healthcare membership is packed with all the fringe benefits that your every employee looks forward to having for their health and safety like group health/term life insurance, doctor teleconsultations, fitness webinars, discounted health checkups and medicine orders delivered at doorstep.
Isn’t it amazing? Apart from these benefits, the plan is extremely pocket friendly, time saving and hassle free!
Contact us to get an instant quote.