Employee fringe benefits and incentive schemes have come in various forms including various forms of monetary non-payments offered to workers as well as their regular salaries or wages. These schemes may be in the form of health services, paid holidays or sick leave, profit sharing or stock options. In cases where an individual exchanges regular wages for any form of fringe benefit, which could be termed as an “incentive premium”, is usually referred to as a “wage replacement” scheme. The term “wage replacement” is used here because an employee could theoretically return to work but not receive any form of monetary payment for that period of time.
In most cases, it is the company itself that implements the incentive schemes. However, there are instances where certain employers and companies also provide fringe benefits to their employees as part of an overall incentive programme. For example, some companies offer their employees paid training as a form of incentive.
Some companies offer their employees’ gifts as forms of incentive or as a reward for achieving good results. These include things like gift vouchers, electronic gadgets, holidays and paid annual leave. Gifts as part of employee schemes have been shown to boost employee retention. In a survey of over 800 executives conducted by McKinsey & Company, it was found that those organisations that provided employees with free products as a form of incentive were more likely to retain their staff than those that did not.
There are many benefits that are often given as forms of fringe benefits. These can include cover for travel expenses for an extended period of time or accommodation and care costs associated with personal injury claims. Certain companies also use these schemes as a way to reward and acknowledge exemplary behaviour by employees. These types of awards are usually for high achievers and can be quite extravagant.
Many employees in the UK are not aware that there are fringe benefits available to them. Often companies will choose not to advertise their employee’s benefits, so it is important to make sure you check with your employer whether any of your fringe benefits are available. It is worth making sure that you have full understanding of any available benefits and their entitlements.
Another aspect to considering fringe benefits is that most of these come under the heading of occupational benefits. These are not benefits that an employee would get on accepting a promotion or a new job. These are benefits that an employee is entitled to on completing his work and that he is legally entitled too. Most commonly these are life insurance and accident benefits. These are very specific and it is likely that your employer will want to know exactly what your take home pay will be as well as any additional income that you can bring in on completion of your work. There are also employee’s financial assistance schemes available in some countries that can supplement your unemployment benefits if you have been disabled by illness or are undergoing care as an out of work force.