Difference between revisions of "Employee benefit"
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| − | [[Employee benefit]] (alternatively known as [[fringe benefit]], [[perquisite]], or, sometimes, [[perk]]; hereinafter, the ''Benefit'') is the rest of [[employee compensation]] that an [[employer]] uses to supplement [[cash compensation]] of its [[employee]]. Some of these supplements may be required by [[employment law]]. | + | [[Employee benefit]] (alternatively known as [[fringe benefit]], [[perquisite]], or, sometimes, [[perk]]; hereinafter, the ''Benefit'') is any non-monetary reward that an [[employee]] receives in exchange for the service he or she performs for their [[employer]] and/or for his or her time spent upon [[employer]]'s requests. |
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| + | Usually, the ''Compensation'' is a part of [[employee compensation]]. The aggregate of the ''Benefits'' is the rest of [[employee compensation]] that an [[employer]] uses to supplement [[cash compensation]] of its [[employee]]. Some of these supplements may be required by [[employment law]]. | ||
Revision as of 23:58, 25 March 2020
Employee benefit (alternatively known as fringe benefit, perquisite, or, sometimes, perk; hereinafter, the Benefit) is any non-monetary reward that an employee receives in exchange for the service he or she performs for their employer and/or for his or her time spent upon employer's requests.
Usually, the Compensation is a part of employee compensation. The aggregate of the Benefits is the rest of employee compensation that an employer uses to supplement cash compensation of its employee. Some of these supplements may be required by employment law.
- Paid time off.
- Retirement plan.
- Health insurance. medical insurance, dental insurance.
- Life insurance.
- Disability insurance.
- Vacation.
- Vesting. When an employee of a company gains rights to stock options and contributions provided by the employer. The rights typically gain value (vest) over time until they reach their full value after a pre-determined amount of time. For example, if an employee was offered 200 stock unites over 10 years, 20 units would vest each year. This gives employees an incentive to perform well and stay with the company for a longer period of time.
- Employee stock ownership plan. A company-established benefits plan in which employees acquire stock, often at below-market prices, as part of their benefits.
- Flexible benefits. A benefits plan that allows each employee to put together a benefits package individually tailored to his or her own needs and situation.
- Employer-sponsored allowance. company car, transportation reimbursement, meals and snacks, recreation center membership, tickets, etc. other than employee expense reimbursement.
Equity-based compensation – stock or pseudo stock programs an employer uses to provide actual or perceived ownership in the company which ties an employee's compensation to the long-term success of the company. The most common examples are stock options.
