Employee benefits are non-wage forms of remuneration through which a company tries to attract and retain people. These include meal contributions, supplementary pension savings, healthcare, contributions towards recreation or sport, education, extra days off, and flexible working hours. Their value varies considerably depending on what people actually use – benefits introduced without asking employees tend to be expensive and not very effective. The tax and contribution regime also matters, since some benefits are favourably treated while others are taxed as wages, which changes their real cost to the company and their net benefit to the employee. For retaining people, flexibility and development generally have a greater effect than material benefits, which quickly become commonplace.
See also: Employee turnover and exit costs, Remote work and home office, Employee development plan.
