A Totally Rad Total Rewards Glossary

Glossary of Employee Recognition, Total Rewards and Company Culture Terms

Fringe Benefits

Fringe benefits are non-wage compensations provided to employees in addition to their regular pay. These benefits can take many forms, including health insurance, retirement plans, paid time off and employee discounts. They are designed to attract and retain top talent, while also helping to promote employee well-being and job satisfaction. Examples of fringe benefits include:

Health insurance
Retirement plans
Flexible spending accounts
Paid time off
Wellness programs
Employee discounts
Education assistance
Child care assistance
Commuter benefits

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What is the impact of fringe benefits?

By offering benefits beyond just a paycheck, companies can show their employees that they value their contributions and care about their well-being. And when employees feel valued and cared for, it can lead to increased job satisfaction, motivation and loyalty among employees, ultimately leading to a more productive and engaged workforce.

How do fringe benefits drive employee engagement and loyalty?

Fringe benefits are a powerful tool for motivating and engaging employees. By providing benefits that address employees' needs and priorities, companies can show their commitment to their employees' overall well-being. This can create a sense of loyalty and commitment among employees, which leads to engagement and retention. Additionally, offering competitive fringe benefits can also help to attract and retain top talent, as employees are more likely to choose companies that offer comprehensive benefits packages.

What are best practices for implementing fringe benefits?

When implementing fringe benefits, it's important to consider a few best practices:

Understand your employees' needs and preferences: Before offering fringe benefits, it's important to conduct research and understand what benefits are most important to your employees.
Offer a variety of benefits: By offering a variety of benefits, companies can appeal to a wider range of employees and provide options that meet their individual needs.
Communicate the value of benefits: Companies should make sure employees understand the value of the benefits being offered, as well as how to access them.‍
Offer customisation options: Employees have different needs and preferences, so offering customisable benefits can help ensure they are getting the most out of their rewards and recognition programme.