Non-traditional vs Traditional Employee Benefits
This article covers meaning & overview of Non-traditional vs Traditional Employee Benefits from HRM perspective.
What is Non-traditional vs Traditional Employee Benefits?
Non-traditional employee benefits/ Perks: Unique and innovative employee benefits offered by a company, keeping in mind the demographics and the needs of the employees. Such benefits encourage healthy work-life balance, fill the existing benefit gap and boost the morale of the employees. Perks, almost costs nothing to the employer while helping the employees to save money on a range of services.
- On-site services such as cafeteria, fitness center, car maintenance, laundry, child care and others
- Pet insurance
- Banking discounts: Waived minimum balance, lower interest rates for loans.
- Dry cleaning pickup
- Legal referral programs and discounts
Non-traditional employee benefits prove to be successful when the employees value the benefit packages offered. Also, the benefits should be promoted in such a way that they are clearly understood by everybody. In such a case, they generally increase the perceived organizational support,commitment and the performance of the employees and decrease absenteeism and turnover.
Traditional employee benefits:Includes the standard offerings of a compensation package like-
- Health insurance
- Transportation reimbursement
- Retirement accounts – 401(K) plan
- Paid vacation days
- Profit sharing- Bonuses
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