28 Jan Employee Perks: How Are They Different to Benefits?

Employee Perks: How Are They Different to Benefits?

This month, Hubb Strategic Consultants will be exploring the ideology behind employee perks throughout a four-part series.

The topic of employee perks is one that is often a grey area in management, as the line between perks and benefits are often blurred, misunderstood and confused.

So, what exactly is the difference between employee benefits and employee perks?

Benefits

Employee benefits are non-wage compensations that supplement salary. This can include items such as pre-tax transit assistance and stock options for example. Benefits often cover more of the employee’s basic needs, and may vary from company to company depending on industry or working-type.

Perks

Perks generally refer to aspects that make an individual choose one job offer over another. Factors such as commute length and growth opportunities can influence a person’s position acceptance, and many incorrectly consider these factors as circumstantial perks.

A perk typically consists of something that assists the employee to perform their role better. Traditional perks at work can include a company car which can also be used as a personal vehicle, discounted travel fares and exclusive hotel suites and deals. Newer age perks now often include gym memberships, standing desks, and off-site team building activities to name a few.

In short, benefits are part of an individual employee’s salary, whereas perks are auxiliary and make the working environment more inviting for employees. If your organisation is having trouble attracting and retaining employees, it may be time to implement employee perks to create an attractive working environment.

Don’t wait until it’s too late, contact Hubb Strategic Consultants today to find out how you can successfully incorporate the right perk strategies for your organisation.