This factsheet was last updated in April 2016.
What are employee benefits?
Employee benefits are non-cash provisions within the reward package, although they have a financial value and cost for employers, for example paid holidays, pensions and company cars.
They may be offered for business reasons, for example motivating employees to achieve organisational objectives, and/or ‘moral’ reasons based on a desire to care for employees’ well-being (and, in so doing, potentially enhance employee engagement). The prevailing financial, legal and social background also play a role in the development and shaping of benefit policies and practices. For example, in the US, the lack of well-developed public health and welfare infrastructures, together with generous tax concessions in relation to staff benefits, have helped drive a wide array of benefits provisions such as healthcare.
Employee benefits generally form a significant part of the overall reward package, with estimates suggesting that their value can account for up to around 40% of the costs to organisations of employing staff.
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- What are employee benefits?
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