Perks or employee benefits or fringe benefits, all refer to one or more of the non-monetary benefits that a company provides to its employees. The term 'perks' is very hard to define, but it is understood to be any benefit which a company provides to its employees, over and above their normal salary.
Employee motivation is one of the main reason why perks are given. And as a lot of candidates look forward to corporate perks, it is important to have a good perks program in an organization. After all, with good job content, good salary and good perks, a company can attract good candidates.
There are just too many options to choose from that suits your company and its employees best. You have to start by factoring in the costs that the company can incur on these corporate perks and see if it is really affordable. To achieve the delicate balance of useful, lucrative and yet affordable perks programs, is one of the issues that the human resource department really has to grapple with.
Below I have listed some of the most common perks that employees of different companies enjoy. You can pick and choose which of these suit your company and then frame your program on those lines.
Financial Services Perks
These perks include all sorts of facilities that the company provides such as insurance covers for on-the-job accidents, social security payments, retirement benefits, severance packages, disability covers, group insurance cover for risky projects etc. These perks depend largely on the nature of the job, for example, a company employing most of its people for a risk-free desk job, need not give any job accident insurance covers. A company may choose one or more of these perks to offer to their employees.
Tangible perks include a lot of things such as a car, or a pick up from home in a shared car, employee quarters, crèches and daycare for the children of employed mothers, to an all-expense paid vacation for the employee of the year. Corporate perks can also include a mobile phone and a vehicle for jobs which involves a lot of communication or travel. Many IT companies give their employees a laptop and hence the facility to work from home.
There are also other corporate perks which the employees of various organizations enjoy. A lot of companies might offer their employees a profit sharing arrangement and share options. This way their income increases. Other perks include merchandise benefits. So if you are working for an FMCG or any other such company, you may get a lot of their products free or at reduced prices. Some other companies may offer perks such as extra sick leaves, extra privilege leaves and sometimes, the option to cash unused leaves. Sometimes, corporate perks also include a full reimbursement of fitness club membership.
There are also a lot of other simple perks such as lunch facility in the office, a canteen, which although not free, is still a very convenient option for an employee. A lot of companies also offer free snacks, tea and coffee arrangements as well. These may also include company picnics and corporate gifts as well.
A lot of companies are offering incentive-based perks to their best employees for employee performance, in order to motivate them and encourage them to continue their efforts at the workplace. So the amount of perks that they receive may be different as well.
Corporate perks are an essential part of any company because they play a vital role in the employee motivation process, and hence it is important to frame a lucrative program for your company.