Perks vs Benefits For Employees – Understanding the Differences

The Difference Between Employee Benefits and Perks

Compensation packages are so much more than just a salary. Benefits such as health insurance factor into an employee’s package. Perks are more than what is formally offered to your employees and can be a reflection of your company culture and how good of a place it is to work.

What are Benefits?

Benefits act as a means of supplementing an employee’s salary. Health insurance, stock options, and 401(k)s are some of the most common benefits to consider your employees. Benefits are used to cover more basic needs than perks and are one of the best ways of attracting new talent to your business. Benefits are often considered to be the second most important feature, after salary, that people consider when looking for a new job.

What are Perks?

There are countless reasons why somebody may choose one job over another. Opportunities for career growth, a short commute length, or an affinity with the company in question’s products or services are all such reasons. However, these circumstantial opportunities are often believed to be perks, but in reality, they’re not.

A perk is widely agreed to be something that can help employees work better. One of the most common perks is a company car that is used as a personal vehicle by the employee. Other kinds of perks that have become more popular over recent years include gym memberships and a range of off-site team-building activities.

Making the Best Choice for Your Team

Here at Benely, we realize that benefits are a complex area for you to consider. That’s why we work closely with you and every individual employee to get the right mix of benefits for your team. With the help of our benefit experts, you’re free to arrange the finer things for your company. Creating meaningful perks for your employees is a lot simpler when our team are working on your benefits program.