Employee Benefits | Meaning and Definition

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

What does employee benefit mean actually? Employee benefits are not actually the salaries paid to the employees at the end of every month. The organization provides additional benefits to their employees apart from their salary. Such benefits include medical insurance, transportation cost, sick or vacation leave, sharing of the organization’s benefits, and plans regarding retirement, to name a few.

Why is it necessary? Some organizations believe that employee benefits help to encourage the employees in many ways and, in turn, benefit the employers too. There are certain ways in which employee benefits help employers and the employees to have a happy work environment.

  • For an organization, employees are the assets, and hence proper care should be taken to safeguard the asset. If an employee is over-pressurized, the result can actually be decreased productivity.
  •  When given to the employers, the extra paid leaves motivate them to take care of their personal responsibilities and, at the same time, benefit the employer as well. A happy employee yields higher results and productivity.
  •  A good work environment always makes an employee achieve a good result.
  •  The most important employee benefit is that the employees can be able to increase their organization’s brand value to a higher level if they have a good environment surrounding them.

Some of the options for various employee benefits are paid leaves, bonuses, increments in salary, a hike in their position, and medical facilities, to name a few.