Additional benefits refer to those advantages offered in a position of employment, excluding salary and possible commissions.
In other words, they are ways of rewarding an employee that are not directly included in the payroll. Although they do have a positive impact on the employee and generate an expense in the company. However, these benefits usually have a lower cost for the company itself than offering its equivalent in salary. Sometimes they can be referred to as wages in kind.
This is due to the fiscal position of the company and its bargaining power with suppliers, which is more advantageous than that of a natural person in most cases.
Extra benefit classes.
Then, based on the most frequent additional benefits in job offers, we could classify them as follows:
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- Transport. It ranges from a company car, to the payment of public transport or an amount per km and wear and tear on the personal car.
- Feeding. It consists of offering dining vouchers to an internal food service.
- Leisure. The most common is to offer discounts and gym vouchers, among other sports activities.
- health or sanitary. Hiring health insurance or certain specific benefits of this type.
- Financial. Better conditions in financial institutions or the possibility of obtaining shares or shares of the company itself.
- Accommodation. It is usually one of the most expensive benefits. They usually occur in situations in which the company urgently needs personnel immediately.
- Other discount programs. These are benefits resulting from bilateral agreements between companies, in which specialized discounts are established for being an employee.
On the other hand, it is important to minimize spending in this section while seeking maximum employee satisfaction. This can be achieved by taking advantage of the sector to which the company is dedicated.
An example could be a company dedicated to insurance in general. This company could offer its employees insurance of any type at a lower cost as additional benefits than a company from another sector.
Extra Benefit Example
Given an agricultural company in which employees are needed on a seasonal basis, they decide to offer the following job advertisement:
‘We are looking for a seasonal worker for the vineyard campaign in La Rioja. Salary and full-time offered according to agreement. In addition, accommodation and a number of bottles of wine from the previous year’s season will be optionally offered depending on the amount collected individually’.
From this offer we can clearly differentiate what is the salary and what is not the salary. Although the salary is specified, we can also see another type of remuneration depending on the amount collected. For what is considered a salary in kind, that is, a direct non-monetary payment. Finally, in the case of accommodation, it can be clearly seen that it is an additional benefit offered by the company that is voluntary to use or not.