Employee fringe benefits and employer-provided benefits in the form include various forms of additional compensation offered to employees as well as their regular wages or salaries, regardless of the method by which they are paid. In most cases, such fringe benefits are normally offered along with a company’s regular wages or salaries as an alternative to cash incentives or bonuses. Examples where an employee trades wages for some sort of additional benefit is usually referred to as a “wage packing” or “wage exchange” arrangement. In these instances, an employee will receive a wage increase of some sort in exchange for giving up some sort of benefits package, usually in the form of an additional incentive payment. The amount of benefit involved will vary according to the agreement between the employer and employee.
Benefits that are provided by way of a service are termed as fringe benefits. These types of benefits are not typically paid by the employer but are only rendered to employees by way of an agreement between the employer and employee. An example of this would be healthcare benefits or dental benefits. A service as a result of a business deal, vacation discounts, child care benefits or educational facilities all fall under the heading of fringe benefits. Other types of benefits that fall under this category include retirement benefits and insurance. Retirement benefits can come in the form of deferred compensation payments from an employer, or could be some sort of a corporate-sponsored retirement plan.
Insurance is another benefit that is often considered to fall under the realm of fringe benefits. Examples of employer-sponsored insurance include group life insurance, group automobile insurance and group dental insurance. The main aim behind these types of benefits is to attract new employees, and to keep existing employees from leaving the employer before the agreed term of employment has expired. Some employers also provide group or family health insurance to employees.
fringe benefits can be expensive, depending on what the employee receives in return for working for the employer. An employee that receives a benefit for working with the company could be entitled to certain benefits that are not mentioned in the contract. It is for this reason that many employees prefer to seek out their own fringe benefits by researching companies that offer them. There are fringe benefits consultants available for this purpose. These consultants help employees find the right company that offers the best deal and the benefits that will make their work more enjoyable.
Many employees do not see any need for fringe benefits, because they do not receive anything in return for working for the company. This may be true if the company is very small. However, the world is becoming more competitive, and many employees do not want to take a job or retire without getting something out of it. If a person works hard for a company for years, it is obvious that the person will not be able to leave the company just because the company decides to drop the employee a package of benefits. Therefore, fringe benefits are a necessity.
In order to determine whether or not the company needs fringe benefits, an employee should ask himself or herself whether or not the benefits would make the employee feel more comfortable while working at the company. Another factor that should be considered is the type of work being performed. For example, an administrative position at a government agency could require some perks such as a desk job or access to conference rooms. On the other hand, a technical position at a hospital could mean the employee would need to consider his or her benefits package carefully. The employee should consider his or her current situation for a couple of years, before deciding whether or not the benefits package is worth the amount of money needed to pay for them.