Fringe benefits and employee perks in type often include various forms of non-wage compensations provided to employees as well as their regular salaries or wages. In certain instances where an employee trades wages for any other form of fringe benefit, this is usually referred to as “salary replacement” or “pay for performance” agreement. These agreements are typically considered invalid when one party does not show enough bargaining ability to bargain for a better agreement.
Normally, such agreements are intended to provide employees with the financial support that may be needed during lean times. Some employers who do offer such benefits to workers include: hospitals, nursing homes, individual family businesses, educational facilities, restaurants, law firms, government agencies, publishing houses, and many more. Such benefits, and especially fringe benefits, are usually a very good benefit package for an employee as they can easily replace a regular monthly salary, increase a person’s earning potential, and/or allow an employee to continue with a career while making a smaller monthly salary. When fringe benefits are offered by employers to their employees, it is usually done so in increments or at a cost lower than the total amount of salary being paid out in regular salary increases. Also, this type of agreement allows employees who may be on temporary assignments to maintain a steady flow of work by receiving the same level of support as they would receive if they were working full time.
Employees’ benefits are not limited to just the employers who are offering them. It is also possible for an employee to give employers a gift of time with pay that would help both the employer and employee. For instance, an employee who is volunteering for a local humanitarian organization may give up time from his or her day job and devote that time to helping vulnerable children. This type of benefit may be a lifesaver for a worker who knows that he or she may not have full-time hours available to spend on the project.
As a rule, most employers consider any fringe benefits offered to employees as being advantageous to them. They consider this because employees who receive benefits or compensation in addition to their regular wages and salaries generally are more likely to feel inclined to provide a beneficial service for the employer. Additionally, employees who receive any type of assistance other than a regular salary increase often do so because they believe that doing so will improve their personal financial situation. When this occurs, employers have an even better reason to offer such benefits and favorable conditions to employees.
Many companies that offer fringe benefits offer them only to a select few employees. In fact, some employers only extend benefits to those who work in the finance, accounting or legal areas of their business. Other companies only extend fringe benefits to full-time employees. Full-time employees who work in the human resources department are often the ones that receive the bulk of these benefits. Some businesses may only offer these benefits to employees who have been with the company for a minimum of one year. Other employers may only offer these types of benefits to newly hired employees, after an established period of time has passed and an employee has worked with the company for at least one year.
One thing is certain: it does make sense to pay for the employee’s fringe benefits. After all, this is an investment for your business. The more money you can save on employee benefits for your employees, the more money you will have left over from your business operating expenses to pay for investments and other activities. If a company offers any type of benefits to its employees, it must be able to discern which benefits actually benefit the employee’s overall financial situation, and which are unnecessary. Doing so will allow you to afford to provide your employees with high quality benefits at affordable prices.