Perquisites, often shortened to “perks,” refer to the non-salary benefits and privileges provided to employees in addition to their regular compensation. These can include a wide range of benefits such as company cars, health insurance, stock options, expense accounts, travel allowances, free meals, and more.
Employers offer perquisites to attract, retain, and motivate employees. These benefits can help to differentiate one company from another and can often be a deciding factor for job seekers when choosing between potential employers.
Perquisites can be especially valuable for senior executives and highly skilled employees in high demand. Offering attractive perks can be a way to incentivize these individuals to join the company and remain loyal over the long term.
While perquisites can be a valuable tool for HR professionals, it’s important to remember that they can also be costly. Offering too many perks can strain the company’s budget and create jealousy and resentment among employees who do not receive the same benefits.
These perks focus on the well-being of employees and can include benefits such as subsidized gym memberships, on-site fitness facilities, wellness programs, and health insurance coverage.
Financial perks provide employees with additional financial support and security. Examples include stock options, profit-sharing plans, retirement savings plans, employee discounts, and bonuses.
These perks are designed to help employees achieve a healthy work-life balance. They can include flexible work schedules, telecommuting options, parental leave, vacation time, and sabbaticals.
Professional development perks aim to enhance employees’ skills and knowledge. Companies may provide opportunities for training and development, tuition reimbursement, mentorship programs, and conference attendance.
These perks focus on easing employees’ travel and commuting experiences. They can include company cars, transportation allowances, corporate travel arrangements, and reimbursement for commuting expenses.
Technology perks have become increasingly important in the digital age. They can include providing employees with the latest tech devices, software licenses, and remote work equipment.
Overall, perquisites can be a powerful tool for HR professionals to use to attract and retain top talent. Still, they should be used strategically and in moderation to avoid creating imbalances and budgetary strain.
It’s worth noting that the specific perks offered by a company may vary depending on its size, industry, and culture. HR professionals can tailor the perks to align with the needs and preferences of their employees while also considering the company’s resources and objectives.