Definition of Employee Benefits
The cash an employer pays to employees is only one component of an employee's compensation. Employers often provide certain benefits to employees in addition to the cash salary or hourly wages. Employee benefits are a fairly broad concept; employers can choose to offer certain benefits, while state and federal laws require employers to offer other benefits.
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Non-Wage Compensation
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An employee's benefits are part of her compensation. According to FindLaw, a legal information website, benefits cover a broad range of concepts. Essentially, anything an employee receives from the employer that is not cash wages is considered a benefit.
Common Benefits
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Vacation time, insurance, stock options and retirement plans are common employee benefits. According to the Free Management Library, a business information website, employers typically cover the costs for most benefits. For example, an employer generally pays out of pocket for holiday pay, paid vacation time and bonuses. Other benefits, such as health insurance plans, require some contribution from the employee.
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Required Benefits
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State and federal laws may require certain employers to offer employees certain benefits. For example, the Family Medical Leave Act (FMLA) requires all government employers and private employers with 50 employees or more to allow employees to take unpaid leaves from their jobs to care for the medical needs of their families. The employer is required to save the employee's job or provide the employee with a comparable position when the employee returns from work. Other required benefits include workers' compensation benefits and unemployment benefits.
Negotiation Chip
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Employee benefits can be used as a bargaining chip during salary negotiations. For example, an employer may offer an employee a salary that is lower than her expectations. According to Quint Careers, a business information website, the employee may be able to negotiate certain benefits that make up for the lower salary (such as more vacation time or better insurance premiums).
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