What are benefits?

Fringe benefits are compensation items that aren’t wages that supplement employees’ salaries. Designed to cover the basics workers would have to pay for out-of-pocket, benefits packages fall into five core categories: paid leave, supplementary pay, retirement, insurance and legally required benefits. Benefits packages are more commonly found in contracts and job offers than job perks, as they’re usually more concrete than some typical perks.

Why benefits matter

Besides being a way to bring in suitable workers, benefits packages make things easier for your employees. For example, your company might offer a better match on 401(k) contributions or more budget-friendly health insurance in its benefits package than potential employees might find at other companies or on their own. By improving your business’s benefits package, you improve your chances of finding quality hires who stay put.

Examples of job benefits

Common examples of job benefits are health insurance, including vision and dental, and 401(k) plans with matching contributions. Other examples of fringe benefits include:

• Paid time off (PTO): As a paid leave benefit, PTO might include sick days, vacation time and maternity leave.
• Pre-tax transit assistance: Workers in metro areas often appreciate benefits such as bus or train passes or paid parking.
• Childcare assistance: Paying for childcare or having a childcare center on-site is great way to improve workers’ bottom lines and morale.
• Stock options: Giving workers stock options as part of a supplementary pay package brings employees and their companies into alignment by ensuring success benefits both parties.
• Legally required benefits: These benefits provide workers with federal- or state-assured rights and protections, such as Worker’s Compensation, Medicare, unemployment insurance, Social Security and overtime pay.

What are perks?

Every potential employee has their own special list of things that would make their individual lives easier. That’s where perks come in — they’re things companies can do to both improve workers’ lives and business productivity. While something like how long it takes to get to the office and opportunities for remote work and telecommuting might not tempt one potential hire, they may mean the world to another, which means a broad range of job perks benefits your company by attracting a diverse workforce.

Why perks matter

In addition to helping your company attract quality hires, perks matter because employee morale matters. While more loosely defined than benefits, that’s the strength of perks — think building company culture through job perks like staff dinners and nature retreats. While these examples provide employees with non-wage compensation, they also provide chances for teammates to bond and brainstorm new ideas, which ultimately benefits your business.

Examples of job perks

In addition to the job perks mentioned above, other options include:

• Company cars: Transportation branded with your business logo that employees can use during working hours and beyond boosts your exposure while getting workers where they need to go.
• In-house cafes: Teaming up with other businesses to provide workers with access to high-quality foods during the workday can go a long way in improving both productivity and morale.
• Special workdays: Casual Fridays have long been a staple of company culture , but you can tailor this job perk to match your company’s specific vibe — think band tees and jeans for businesses with a musical bent or shorts to help cool down on hotter summer days.
• Productivity boosts: Simple changes to the office such as standing desks can help boost efficiency in fast-paced office spaces, while tables with snacks in open offices provide employees with grazing opportunities while they go about their busy days.

Worker hiring and retention matter, especially when you’re building your small business and need employees you can count on to expand your vision. Benefits and perks help in this regard, letting you create packages and policies tailored to the type of company culture you wish to build and employee you wish to attract.