A company’s Attractiveness As An Employer Also Depends On The Benefits It Provides To Employees.

For many, the benefits offered are essential in deciding whether to accept a company’s job offer. They have an important role in ensuring the so-called work-life balance and can often be a necessary supplement to the salary or a marketing tool for the acquisition of new employees.

Table of Contents

Toggle

Why do companies offer benefits?

When negotiating a salary at an interview or offering an employment contract, we talk about employee benefits. A company car, telephone, or laptop, even for private purposes, can save personnel costs by tens or hundreds of euros. When a company provides you with financial and non-financial benefits, it does not consider you only a tool for generating profit. It wants to support the functioning of the team spirit, and it wants to motivate you and arouse a feeling of identification. If it allows you to perform sports or cultural activities and offers fruit or drinks for free, it wants to compensate for the high pace of work and commitment you expect from you. It is a simple principle of reciprocity: you give something to the company and give it back.

Ways of providing employee benefits

The company can provide employee benefits in two ways:

Comprehensive provision of all benefits to all employees. Thus, all employees are entitled to all benefits. Whether they draw them or not is entirely up to them.
Benefits cafeteria is a system in which the employee chooses precisely the benefits that represent the most excellent value for him within the set limit. The total budget the company sets aside for this method is the same. Still, it is better for you as an employee because you can use it to optimize the use of employee benefits according to what you prefer.

Employee benefits and taxes

Are the benefits offered by the company free? The company can claim some gifts on a tax basis, and some are subject to income tax and levies on the part of the employee.

For example, in the case of meal tickets, the employer is obliged by law to contribute at least 55% of the value of the meal ticket. A frequent benefit can be that the employer pays employees more than is required or even the total amount of the meal ticket. Such a benefit is tax-exempt income for the employee.

Financial and non-financial benefits

Employee benefits are divided into two main groups: financial and non-financial. Economic benefits include various allowances or services that save employees their own money.