What Are Fringe Benefits?

You may wonder what are fringe benefits from employers. Fringe benefits are paid by an employer for the benefit of an employee. Fringe benefits are provided in addition to regular compensation for the employee. These benefits can take many forms, from very extravagant to the basic benefits that many employees expect.

Fringe Benefits

There are many things that could qualify as a fringe benefit. For example, many employees today get some type of health insurance paid for by their employers. Getting sick days and vacation days is another example of a fringe benefit. Many companies also provide fringe benefits in the form of retirement benefits. For example, they will start a 401(k) plan and allow the employees to make contributions. The company will then match those contributions up to a certain amount. In some cases, companies are much more elaborate with fringe benefits packages for executives. For example, they might give them access to a private jet or offer large bonus programs as incentives.

Attracting and Retaining

Fringe benefits are offered by employers as a way to attract the best employees and retain them. In some highly competitive fields, these incentives can be very enticing, and employers have to work hard to retain their best employees.