Fringe Benefits Examples

Summary

In this video, Josh, founder of HR University, explores various fringe benefits employers can offer to enhance employee satisfaction and retention. These benefits, which can be monetary or non-monetary, include health insurance, paid vacations, bonuses, gym memberships, and educational assistance. The video also covers required benefits such as workers' compensation, unemployment insurance, and family leave. By providing these perks, employers not only improve employee wellbeing and productivity but also strengthen their company's reputation and brand identity. Josh provides actionable examples for HR professionals to implement in their organizations.

Takeaways

• 😀 Fringe benefits are additional perks or compensation given to employees beyond their regular salary.
• 😀 These benefits can be either **monetary** (e.g., health insurance, vacation pay) or **non-monetary** (e.g., gym memberships, company cars).
• 😀 Offering fringe benefits can enhance public perception, brand identity, and market competitiveness for organizations.
• 😀 Employees benefit from increased happiness, engagement, retention, motivation, and improved work-life balance through fringe benefits.
• 😀 Some fringe benefits are **legally required**, such as workers' compensation and unemployment insurance, while others are **discretionary**.
• 😀 Common **monetary** fringe benefits include health insurance, bonuses, paid vacations, and retirement plans like 401(k)s.
• 😀 **Non-monetary** fringe benefits include items like gym memberships, company cars, educational assistance, and employee discounts.
• 😀 Offering educational assistance and reimbursing employees for educational expenses is a valuable non-taxable benefit that enhances employee skills.
• 😀 Health resort expenses and housing allowances are examples of fringe benefits that can improve employees' personal wellbeing and reduce financial burdens.
• 😀 **Legal** fringe benefits such as disability insurance and family medical leave ensure that employees are protected in case of illness or family needs.
• 😀 Providing **retirement plans**, such as 401(k)s, helps employees save for the future and reduces financial stress for both them and their families.

Q & A

What are fringe benefits?

Fringe benefits are additional compensation or perks provided to employees beyond their regular salary. These can be either monetary (e.g., health insurance, vacation pay) or non-monetary (e.g., company cars, gym memberships).

What are some examples of monetary fringe benefits?

Monetary fringe benefits include health insurance, vacation pay, retirement plans (e.g., 401k), and bonuses.

What are some examples of non-monetary fringe benefits?

Non-monetary fringe benefits include company cars, lodging, employee stock options, athletic club memberships, and discounts on company goods and services.

Why are fringe benefits important for organizations?

Fringe benefits help improve an organization's public perception, brand identity, and market competitiveness. They can also play a significant role in attracting and retaining top talent.

How do fringe benefits affect employees?

Fringe benefits contribute to increased employee happiness, engagement, retention, and motivation. They also improve work-life balance and reduce stress.

What is the benefit of offering paid vacation as a fringe benefit?

Paid vacation helps employees recharge, improves mental health, boosts productivity, and reduces stress. It also shows employees that their contributions are appreciated.

What is the purpose of offering athletic club memberships as a fringe benefit?

Athletic club memberships promote employee health and well-being by providing access to fitness facilities. This can reduce stress, improve work-life balance, and increase productivity.

What types of benefits can employers provide for health and wellness?

Employers can offer health resort expenses, accident and health benefits (including dental and vision), health savings accounts, and long-term or short-term disability insurance.

What are some legally required fringe benefits for employees?

Legally required fringe benefits include workers' compensation insurance, unemployment insurance, family and medical leave (FMLA), and disability insurance (which may vary by state).

How does educational assistance work as a fringe benefit?

Educational assistance allows employers to reimburse employees for educational expenses, helping them enhance their skills and knowledge. This benefit is non-taxable and can improve employee performance and company efficiency.