Employee fringe benefits and perks in various form include a variety of various non-wage compensations offered to employees as well as their regular wages or salaries. Such instances where an employee trades wages for any other form of monetary benefit is commonly known as a” Salary exchange” or “pay for performance” agreement. For an employee to agree to such an agreement, he/she must have a justifiable reason for doing so. Such reasons include a rise in pay or promotion at the time of exit from employment, a change in working conditions or relocation, or a change in company policy. The following are some typical examples of salary exchanging or salary switching agreements.
Companies looking to lure new employees to join can do so by offering them fringe benefits that they cannot get anywhere else. Some companies have been known to offer cash bonuses, free meals, or the chance to attend seminars or training sessions. Employees are often impressed with these perks and will work hard to earn them, and in return they reward their employers with raises and better perks at work.
Relocation packages are another form of employee incentive offered to new employees. Many companies require potential candidates to sign contracts that outline the compensation package, terms and conditions once the employee moves to work at a certain place. Usually, the entire duration of the contract is thirty days. The exact same agreement may also be used when an employee moves to another company within the same company. In this case, the entire contract period is extended. Some companies use the “market value” of the property to determine this amount.
Insurance is a fringe benefit offered by many companies. Health, dental and vision insurance can cover various costs incurred while working. This can be particularly useful for employees who need to visit a specialist or take regular medication on a daily basis. However, some companies have been known to refuse to pay for certain benefits. For example, if an employee’s car needs repair and deductibles are paid, but the vehicle is re-sold, those expenses are not covered when the employee takes the money out of his or her own pocket to pay for the repairs. Other forms of insurance required by employees include life insurance and disability insurance.
One of the biggest fringe benefits offered by companies is medical coverage. Medical benefits can take the form of group coverage that can be tailored to fit specific employee requirements. Alternatively, employees may be able to choose a health plan that is offered through the company or through a private insurance company.
The types and amounts of fringe benefits offered by different companies vary. Many companies base their benefits on the cost of offering them, so this aspect can make a huge difference in how much an employee is eligible for. Furthermore, companies may choose to implement their benefits during an employee’s initial recruitment or induction. This can increase the potential for employees to receive fringe benefits when they are hired. Regardless of which benefit is chosen, however, employees are better off when they know they are available.