The Reward Management Toolkit

Tool 12Employee benefits

Introduction

Employee benefits consist of arrangements made by employers for their employees that enhance the latters’ well-being. They are provided in addition to pay and form important elements of the total reward package. As part of total remuneration, they may be deferred or contingent, like a pension scheme, insurance cover or sick pay, or they may be immediate, like a company car or a loan. Employee benefits also include holidays and leave arrangements that are part of an employee’s terms and conditions of employment but not strictly remuneration. Some benefits are referred to as ‘perks’ (perquisites) or ‘fringe benefits’, but usually only those benefits that extend beyond the core pensions and health benefits, ...