A Glossary of HR Terminology

Glossary of Human Resources Management and Employee Benefit Terms

A Glossary of HR Terminology

Glossary of Human Resources Management and Employee Benefit Terms

HR Wordbook > Fringe Benefits

HR Wordbook > Fringe Benefits

Fringe Benefits

Fringe Benefits

What Are Fringe Benefits?

Fringe benefits are benefits that supplement an employee’s normal salary. While the name might suggest that fringe benefits are uncommon or unique, they are what most of us would call regular employee benefits.

 

What Are Fringe Benefits Examples

Some of the most common examples of fringe benefits are health insurance, workers’ compensation, retirement plans, and family and medical leave. Less common fringe benefits might include paid vacation, meal subsidization, commuter benefits, and more. Many companies offer a combination of both common and uncommon benefits to help attract new hires and keep current employees satisfied.

 

Fringe Benefits and Employee Satisfaction

Some fringe benefits can reduce employee dissatisfaction while others may increase satisfaction. For example, since most employees view health insurance as a necessity, providing it as a benefit won’t necessarily increase employee satisfaction—it will simply prevent the dissatisfaction your employees would feel if your organization did not provide health insurance. On the other hand, paid vacation is not a requirement in many employees’ eyes, so offering it to can boost their feelings of satisfaction.

What Are Fringe Benefits?

Fringe benefits are benefits that supplement an employee’s normal salary. While the name might suggest that fringe benefits are uncommon or unique, they are what most of us would call regular employee benefits.

 

What Are Fringe Benefits Examples

Some of the most common examples of fringe benefits are health insurance, workers’ compensation, retirement plans, and family and medical leave. Less common fringe benefits might include paid vacation, meal subsidization, commuter benefits, and more. Many companies offer a combination of both common and uncommon benefits to help attract new hires and keep current employees satisfied.

 

Fringe Benefits and Employee Satisfaction

Some fringe benefits can reduce employee dissatisfaction while others may increase satisfaction. For example, since most employees view health insurance as a necessity, providing it as a benefit won’t necessarily increase employee satisfaction—it will simply prevent the dissatisfaction your employees would feel if your organization did not provide health insurance. On the other hand, paid vacation is not a requirement in many employees’ eyes, so offering it to can boost their feelings of satisfaction.