Are You Getting the Best Benefit From Your Employee Benefits?

Samples of Employee Benefits and Perks: Educating Employees About Benefits

Two men shake hands and agree on benefits while two female employees look on
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What Are Employee Benefits?

Benefits are a form of compensation paid by employers to employees over and above the amount of pay specified as a base salary or hourly rate of pay. Benefits are a portion of a total compensation package for employees.

Are Your Employee Benefits Giving You the Payback You Deserve?

Are your comprehensive employee benefits giving you the payback you deserve in increased employee appreciation and satisfaction?

Chances are, your employee benefits are not.

On average, organizations spend 41 cents for employee benefits for every dollar of payroll. That's 29% of the total employee compensation package. Research reported in the journal, Personnel Psychology, suggests that employees only understand and appreciate between 31 and 68% of the cost or market value of the employee benefits they receive.

In fact, the most recent data indicates that employers are spending 43% of total pay on types of employee benefits.

In the United States, on average, organizations spend 43 cents for benefits for every dollar of payroll. Research reported in the journal, Personnel Psychology, suggests that employees only understand and appreciate between 31 and 68% of the cost or market value of the benefits they receive from their employer.

Why Do Employees Undervalue Benefits?

Employees undervalue their benefits for many reasons including:

  • employers communicate the value of the benefits poorly and infrequently,
  • the employees have little or no choice in selecting benefits packages or options, and
  • the employees misunderstand the market value of their benefits and the additional cost of their compensation package to employers.

For employees to understand the value of the benefits they receive, employers must educate employees and family members and provide monthly benefits statements that share the true cost of the benefits.

Maximize the Value of Employee Benefits Expenditures

Employers can overcome these factors by allowing employees to make choices about the types of employee benefits and by providing lots of information. You can jump start the education process by providing paycheck inserts that detail your cost for each employee benefit.

Other ways to get employees to think about the value of their employee benefits include interactive computer quizzes, employee benefits fairs, telephone hot lines, workplace posters and video tapes or television discussing employee benefits.

Firms that wish to maximize the value of their employee benefits expenditures need to survey their employees to ask them the types of employee benefits that they value and how much they value each type.

Employee benefits surveys or focus groups are important first steps in understanding employee preferences for types of benefits. Relevant questions about the desired types of employee benefits might include the following.

  • What types of employee benefits are most important to you?
  • If you could choose one new type of employee benefit, what would it be?
  • If you were given X dollars for employee benefits, how would you spend them?

Follow-up research about the cost of employee benefits that employees desire can help you determine which programs will provide the most bang for the buck. On the basis of the data developed, you can adapt your employee benefits offerings or provide choices about types of employee benefits that are consistent with organizational objectives such as employee retention or performance.

Consider Types of Employee Benefits

The variety of employee benefits offered today is immense. Some employee benefits, such as health insurance and retirement benefits, are almost institutionalized or expected in the United States.

However, other employee benefits are not - and these are the types of employee benefits that set companies apart. Organizational values are often manifest in the types of employee benefits organizations offer. Thus, the employee benefits help to establish an organization's positive reputation as an employer of choice in the marketplace.

So, isn't it about time to reconsider the employee benefits package that your company offers? Following is a long list of the types of employee benefits that are offered across hundreds of U.S. firms. The cost of these employee benefits varies, as do employee and employer perceptions about the value the employee benefits deliver.

The key for organizations looking for a competitive edge, through the types of employee benefits, they offer, is to determine what employee benefits you can provide that are most valued and useful to your employees. Hopefully, these employee benefits will approach a 1:1 cost to perceived benefit ratio.

Employees Think of Some Benefits as Perks

Perks are employee benefits, usually in addition to salary and standard employee benefits. The word, perk or perks, is a short form of the word perquisite which means incentives, bonuses, extras, or sweeteners. In use in business, the term perks has come to mean benefits or extras above and beyond the normal comprehensive benefits package.

Perks also refers to nonstandard benefits that are unusual or for which only a limited number of employees are eligible. You will hear employees in the business world use the word perks in reference to any nonstandard benefit though this is not the usual reference. 

In organizations, perks are often viewed as an incentive or a form of gratitude that is offered to executive level employees or employees with seniority or longevity – something that sets the employee aside from the average employee.

Types of Employee Benefits and Perks

Want to see a list of the types of employee benefits that your employees want and need? Here are the employee benefits that employers need to offer to attract and retain superior employees.

Brooks C. Holtom is an Assistant Professor of Organizational Behavior at Marquette University. He contributed to this article. Email:

Types of Employee Benefits

Following are samples of the employee benefits that are offered across many organizations. Use this list of employee benefits to think creatively about your current employee benefits package.

Are your employee benefits giving you the competitive edge in attracting and keeping the best employees? Are your employee benefits helping you to create a workplace in which employees are motivated, happy and productive?

If not, use this list to determine the types of employee benefits that you may want to consider providing. You're in competition with the best employers for the best employees. These types of benefits will attract and retain your best talent.

Bonus Options for Employee Benefits


Medical and Health Employee Benefits


Paid Time Off Employee Benefits

  • 35 extra vacation days in 10th year and every 5th year thereafter
  • Personal or emergency business days or floating holidays
  • Paid sabbaticals
  • Professional association participation


Insurance Benefits for Employees

  • Travel accident insurance (when traveling on company business)
  • Insurances mentioned under "Medical and health"


Retirement Benefits for Employees

  • Defined benefit pension
  • Defined contribution
  • Financial planning assistance
  • 401(k)
  • Profit sharing
  • Discount stock purchase plans


Children and Family Employee Benefits

  • Free child care
  • On-site child care
  • Free elder care
  • Vouchers to help pay for child care
  • Information about cost and quality of day care
  • Discounts on day care
  • Flexible spending accounts for child care
  • Sick child care center (to cover when providers won't accept children)
  • Financial support for infertility treatments and/or adoption aid


Employee Benefits Related to Pets

  • On-site kennel service
  • Dog and cat grooming
  • Animal sitting for business travelers
  • Pet walking services
  • Bereavement period for the loss of pets
  • Pet insurance
  • Bring a pet to work day
  • Allowed to keep pets at work (an office cat)


Education and Development Employee Benefits

  • Tuition reimbursement or payment for seminars and classes
  • Educational assistance (interest-free loans for own or children's education)


Concierge Services as an Employee Benefit

  • Car wash and oil change
  • Dry cleaning service
  • Maid service to clean home
  • Errands run


Food as Employee Benefits


  • Free drinks such as pop, coffee, tea, juice, and espresso
  • Free lunch
  • Free popcorn, ice cream, fruit, or other snacks
  • Discount meals
  • Holiday turkeys
  • Already prepared take-home meals
  • Paid mini-bar snacks at hotel (while on travel)
  • Paid meals for entire family if working on weekend (to allow some family time)
  • Beer, wine, meals included in company-provided refreshments at company events


    Clothes as Employee Benefits

    • Free uniforms or uniform cleaning
    • Free clothes for personal use (such as shirts, sweaters, jackets, hats)
    • Shoe repair
    • Safety shoes
    • Safety eyeglasses


    Personal Care Employee Benefits

    • Beautician on site
    • $5 haircuts
    • Free on-site massages
    • Nap time during the workday


    Discounts for Employees as Benefits

    • Leased automobiles
    • Life insurance
    • Discounts (up to 50%) of closing costs in the purchase of a new home
    • Clothing


    Transit Employee Benefits

    • Vanpool programs
    • Company car
    • Free or subsidized mass-transit passes
    • Free parking (car or bicycle)
    • Free taxi rides home
    • First-class travel
    • Free ride in jump seat of company planes
    • Free airline passes
    • Keep frequent flyer miles for personal use


    Other Types of Employee Benefits

    • Relocation expenses
    • Subsidized or free housing
    • Employee referral bonus
    • Boomerang bonus (employee rehire bonus)
    • Prepaid legal services (telephone advice, wills, purchase of a home)
    • Award or gift certificates (redeemable at the employer's or another local store) as bonuses for attendance, productivity, and punctuality
    • Game rooms (pool, foosball, video games, etc.)
    • Free movies
    • Free cigarettes
    • Company sponsored/subsidized events such as trips to athletic events, concerts and hikes
    • Theme days such as Halloween costume days and holiday cookie exchange days
    • Condominium, hotel, camping or recreational areas for employees to use
    • Annual family trips back to the "home country" of H1 B visa employees
    • Relocation back to the "home country" if the job doesn't work out
    • Relocation back to any United States location in case of "no fault" layoff or termination
    • Birthday card or note from executive
    • Assistance in obtaining a visa to visit the United States
    • In-plant bank branches for employee banking services
    • Life Cycle account of $10,000 to help employees cross major thresholds such as buying a first house or financing college education

    Employers who consider and offer many types of employee benefits will experience positive employee morale and retain employees better than organizations that do not. Employers who educate their employees about the value of the employee benefits they receive can maximize the value to employees of the employee benefits that the employer provides.

More Information About Benefits

The Bureau of Labor Statistics offers information and statistics about benefits.


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