Employee benefits are no small thing, especially in a competitive job market. More than half of job seekers give heavy consideration to a company’s health, dental and vision plans, according to one Fractl survey. But employee perks don’t stop there. If you have the resources, offering fringe benefits that go beyond what’s required can be a great way to attract and retain talent.

What are fringe benefits?

A fringe benefit is employee compensation that’s awarded on top of regular wages. That could include everything from a gym membership to flexible work arrangements.

While some employers are required to offer certain benefits (businesses that have at least 50 full-time employees must provide health care coverage, for example) fringe benefits go beyond the bare minimum. They can help companies acquire and keep talent — if workers feel valued and cared for, they may be less likely to jump ship.

10 fringe benefits that can help attract, and retain, employees

1. Cash bonuses

This might be a referral bonus, holiday bonus or performance-based bonus. According to a 2022 Zippia analysis, 33% of companies in the U.S. offer year-end bonuses. The average bonus pay is 11% of salary for exempt employees and 5.6% for hourly employees. This type of fringe benefit can be a dangling carrot that helps with employee retention and motivates your team to do their best work.

2. Paid time off (PTO)

Most employees appreciate a generous PTO policy. It can help set the stage for a healthy work/life balance, which is becoming increasingly more important. One Bamboo HR survey found that over a third of workers value paid time off more than pay raises. Above-average PTO benefits feature at least three weeks of paid time off, plus 10 to 12 paid company holidays per year.

3. Flexible work arrangements

Remote work has become much more common in recent years. Allowing employees to be flexible with how they work could increase employee satisfaction. According to a 2022 Owl Labs survey, 62% of workers feel more productive working remotely. What’s more, 86% said that being able to partially work from home would make them happier.

4. Paid parental leave

Offering paid leave to parents can help curb employee turnover. It enables them to take the time they need to care for a new baby without having to worry as much about the financial impact. While a handful of states require paid leave, most do not. If your business is able to provide full or partially paid leave, it can be a huge support for employees who are growing their families. That could, in turn, increase employee satisfaction and help employers avoid the cost of finding and training new employees. 

5. Commuter benefits

For workers who are expected to be on-site, simple commuter benefits could be enticing. That can include a vehicle maintenance allowance, toll reimbursement, or the ability to pay for public transportation using pre-tax dollars. These benefits can ease frustration and financial stress for employees.

6. Employee discounts

Employee discounts can be a nice added bonus for workers that boosts both morale and brand loyalty. It can also increase sales if it motivates them to spend. Another perk can be to extend the discount to friends and family for a limited time each year.

7. Access to a health savings account (HSA)

If a high-deductible health plan is available to employees, you might consider adding a health savings account (HSA) to your benefits menu. It’s a tax-advantaged account that can be used to cover qualified medical expenses. High-deductible plans are also more cost-effective for employers. They can use those savings to contribute to employee HSAs on their behalf — another great benefit.

8. Help with childcare

Childcare is often a major expense for families. A dependent-care flexible spending account (FSA) allows employees to cover the cost with pretax dollars. Alternatively, you might consider bringing a third-party childcare provider to your brick-and-mortar locations, then offering their services to employees at a discount.

9. Tuition reimbursement

Tuition assistance can be a strong employee retention tool. It can also translate to a nice tax break for employers. As far as fringe benefits go, this one could get expensive if it’s utilized by many employees. However, they may be less likely to leave if they’re getting help with their education costs. 

10. Paid volunteer opportunities

If possible, consider giving your employees so many days off per year to participate in volunteer events. It can show your team that your business is socially responsible and cares about more than just profits. There’s also a built-in opportunity for team building and group bonding. 

The right fringe benefits for your company will depend on your budget and employee base. You’ll ideally want to choose benefits that are appealing to your team. When done right, they can draw in talent — and help keep them there.