Employee Benefits | Meaning and Definition

What Are Employee Benefits?

Employee benefits, also known as perks, perquisites, or fringe benefits, are some additional perks that organizations or businesses offer their employees apart from their regular salary payslips.

Why is it Important?

If an employee is over-pressurized, it can affect their productivity at work.
When employee benefits like extra paid leave are provided to the employees, it motivates them to put more effort at work without any worries.
A good work environment always makes an employee achieve a good result.
It gives the organization a competitive edge as employees also prefer to work in an organization that cares about their needs.

Some common employee benefits that organization offers are:

Workplace benefits

These are the common benefits that every employee gets while working from the office. It includes; lunch or snacks, skills development training, and employee engagement activities.

Healthcare benefits

These benefits include perks for the health and wellness of employees. Some common healthcare benefits include; medical insurance, hospital bed fess, dental insurance, vision insurance, etc.

Financial Benefits

Financial benefits include monetary perks that employees enjoy while working for an organization. It includes perks like; pension plans, personal loans, bonuses, increments in salary, salary advances, etc.

Life Insurance

There are various types of life insurance plans that an organization may offer. Depending upon their personal needs, an employee can choose to opt for any policy.