What do employee benefits refer to?

Employee benefits encompass various non-wage compensations offered to employees beyond their base salary. These benefits can include essential aspects such as health insurance, retirement plans, paid time off, and other perks designed to improve the overall well-being and job satisfaction of employees. The inclusion of these benefits is crucial for attracting and retaining talent in a competitive job market, as they contribute significantly to an employee's total compensation package.

While training programs for new hires, annual salary increases, and performance-related incentives are all essential components of employee management strategies, they fall outside the definition of benefits. Training focuses on skill development, salary increments are related to pay, and incentives are often tied to specific performance metrics rather than being a standard part of compensation. Thus, recognizing that employee benefits specifically refer to non-wage compensations helps distinguish them from other aspects of employment.