Fringe benefits are an additive compensation given to employees on top of their wage or salary provided to an employee in the course of employment. Common examples include health and dental insurance, a company car, or vacation and sick pay. Fringe benefits also attract certain legal and financial requirements enforced by the Australian Taxation Office, but here are the reasons why you should offer fringe benefits to your employees.
Why You Should Offer Fringe Benefits
In a competitive market, fringe benefits may be the distinction that your business can provide over rival companies.
The most obvious merit of providing these perks is to motivate employees and increase productivity. Providing your employees with supplementary services indicates your care for them and expresses their worth. When people feel important they will work more diligently as their contributions seem valued and convey loyalty to your business. This will reflect well on you as an employer and improve retention of employees as well as incentivise future recruitment.
Fringe benefits are usually included in your employment agreements. Specifying them directly highlights your attention of care for your employees as an employer and promotes your image as a business.
Fringe benefits also improve employee wellness and satisfaction. Reducing stress in the workplace is vital and this will be reflected in your employee’s attitude and their productivity. As an employer, you need to encourage employees to enjoy their work and offering something like a gym membership, is an easy way to do so.
Fringe benefits also provide ancillary merit. Treating your employees in a positive manner will raise your business’s public perception and image. This will, in turn, increase potential recruitment as well as appeal to consumers by highlighting the integrity of your business.
Which Fringe Benefits Should You Offer
The type of fringe benefits you should offer depends on the size, objective and budget of your business. But an important aspect to consider is not necessarily the largest or flashiest perks, but the ones your employees want. Communicate with your employees to find a way to appeal to everyone.
Tailor your fringe benefits appropriately, especially if you operate as a small business. Ideally, you want to offer as much as you can, and as soon as you can. Even if you cannot provide large benefits as a small business it is encouraged you find small perks for your employees.
Try not to fall behind your competitors and compare similarly offered fringe benefits in the market. Your availability of benefits should never affect your recruitment. Offering these rewards should be viewed as an advantageous long-term investment for your employees and your business.
Also, be aware of the types of fringe benefits, as some are exempt from tax. These commonly include:
- Relocation expenses;
- Car parking;
- Workers compensation;
- Travel for medical treatment;
- Occupational health counselling;
- Meals provided by the employer and consumed on work premises;
- Taxi travel to and from work.
Look at fringe benefits as a long-term investment to increase employee satisfaction, production and your public perception. Assess your relevant business factors and listen to what your employees want before implementing your extra benefits.
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