Definition of Employee Benefits

Employee benefits, also known as extra-legal benefits, benefits in kind, fringe benefits, perquisites, or perks, are any form of compensation paid to employees in addition to their normal wages or salaries.

Why offering Fringe Benefits

In today’s competitive job market, attracting and retaining top talent is more challenging than ever. One effective way to stand out as an employer of choice is by offering a comprehensive package of fringe benefits. These benefits go beyond the basic salary and can significantly enhance the overall employee experience, leading to a more satisfied and loyal workforce.

Attracting Top Talent

Providing attractive employee benefits can make your company more appealing to potential employees. Health insurance, retirement plans, and flexible working hours are just a few examples of benefits that can draw in the best candidates and give you an edge over competitors. Talented professionals are often looking for more than just a paycheck; they seek employers who value their well-being and provide opportunities for a balanced and fulfilling life.

Increasing Employee Retention

Happy employees are less likely to leave. Fringe benefits that address employees’ needs and preferences can lead to higher job satisfaction and lower turnover rates. This, in turn, reduces the costs and disruptions associated with hiring and training new staff. When employees feel that their employer is invested in their long-term success, they are more likely to stay with the company and contribute to its growth.

Boosting Productivity

Health and wellness programs, childcare support, and other benefits contribute to a healthier, more focused workforce. Employees who feel supported are more likely to be productive and take fewer sick days, ultimately benefiting the company’s bottom line. Investing in employees’ health and well-being not only improves their quality of life but also enhances their performance and commitment to the organization.

Providing Tax Advantages

Certain fringe benefits offer tax advantages for both employers and employees. For example, benefits provided on a pre-tax basis can lead to significant tax savings. Additionally, many fringe benefits are tax-deductible for employers, further enhancing their financial appeal. By optimizing the tax benefits of fringe benefits, companies can make these offerings more cost-effective while providing valuable support to their employees.

Improving Job Satisfaction

Fringe benefits can play a crucial role in improving employee morale and job satisfaction. When employees feel valued and appreciated, they are more likely to stay motivated and engaged in their work, fostering a positive company culture. A supportive and inclusive work environment can lead to increased collaboration, creativity, and overall job satisfaction, making the company a more enjoyable place to work.

Supporting Work-Life Balance

Benefits such as flexible working hours, remote work options, and generous vacation policies help employees achieve a better work-life balance. This not only enhances their overall well-being but also leads to increased loyalty and commitment to the company. By providing the flexibility and support employees need to manage their personal and professional lives, employers can create a more resilient and dedicated workforce.

Employee Benefits are Often Granted in Belgium

Given the heavy tax burden in Belgium, extra-legal benefits are quite common and popular here. It is a win-win for both employers and employees, and because of this fringe benefits are widespread in Belgium.

Some of these benefits are exempt from tax and social security charges, provided certain conditions are met. Your payroll provider and an employee benefits specialist can check this for you.

Examples of Employee Benefits

Examples of employee benefits include:

• Pension plan
• Group insurance
• Health insurance
• Meal vouchers
• Eco vouchers
• Company car
• Company bike
• Mobility budget
• End-of-year staff gift
• Smart phone
• Additional holidays
• Warrants
• Employee Stock Options
• Profit sharing
• Supplementary child allowance
• Computers, smartphones and internet connections