5 Benefits of Offering Your Employees Fringe Benefits

Fringe benefits can take many forms today from tuition assistance to free childcare. They are being used by some of the most successful companies in the world to attract and retain talented employees. These types of benefits also provide direct benefits to employers. There are five advantages of offering fringe benefits to employees.

Better Morale and Job Satisfaction

Fringe benefits increase the morale of workers. This leads to better job satisfaction. The result of improved morale and job satisfaction is higher productivity because employees feel better compensated for the work being performed. Even small collections of fringe benefits like transportation allowances will motivate employees to perform better while on the job. This can increase revenue.

Lower Turnover

Companies that offer fringe benefit packages to employees experience lower turnover rates than businesses that do not. The fringe benefits are perceived as a valuable advantage to the position over similar positions with other companies. This prevents employees from leaving. Lower turnover results in a more skilled and experienced workforce that will benefit a growing company. A skilled workforce can perform a wider range of tasks while keeping costs low.

Tax Benefits

Fringe benefits provide tax advantages to both employees and employers. Employees have the amount of certain benefits deducted from income lowering the amount of taxes that must be paid. Employers have access to gov tax credits for fringe benefits like tuition assistance. These credits can lower operating costs over time. It is important to consult with professional employment tax providers in order to determine whether particular fringe benefits qualify for credits. Some are not eligible while others are tax-deferred.

Attract Top Talent

Employees in the market today are increasingly looking for companies that offer fringe benefits as part of a basic employment package. Highly skilled or experienced workers are actually using fringe benefits as a negotiating point when forming contracts or comparing employers. A major advantage of offering fringe benefit is that they will attract top talent. This can keep a business competitive and successful in the marketplace.

Lower Compensation Costs

One final advantage that comes with fringe benefits is lower costs for better compensation. Many types of fringe benefit programs can be established for very little money largely because it is possible to leverage the participation of the entire company. Other benefits are simply inexpensive to implement such as providing access to company cars. The cost of the actual benefits can be low especially with tax credits. The value of the compensation, however, is perceived as very high by employees.