In the field of salaried work, a field that is constantly changing and, above all, under increasing pressure due to competition for talent that is becoming fiercer, companies are often faced with the challenge of finding innovative ways to attract and retain the best professionals.

In this context, extra-salary benefits have become essential tools in the arsenal of strategies of human resources departments. Today, it is no longer enough to offer a competitive salary; today’s employees are looking for a complete compensation package that will value not only their work, but also their general well-being.

The importance of consistent employee benefits should not be neglected at all. In addition to the fact that these reward packages, additional to the salary, offer employees a better standard of living, they also exert significant effects on their motivation, productivity and loyalty to the employing company. A well-thought-out package of extra-salary benefits can make the difference between retaining a valuable employee and the risk of losing him to the competition.

For employers, offering generous fringe benefits is not just a gesture of recognition and appreciation for the employees’ efforts. It is also about an intelligent investment strategy that brings, in the long term, numerous financial and operational advantages to the entire company.

Through this article, we aim to explore the field of extra-salary benefits and discover how they can transform an ordinary workplace into an environment where employees feel valued and motivated.

1. Extra-salary benefits for employees – definition, evolution and importance

In search of a balance between professional and personal life, modern employees place more and more emphasis on the extra-salary benefits package offered by employers to employees. But what are these benefits, in fact, and how do they differ from the direct salary paid to employees?

• What does extra-salary benefits mean?

The term fringe benefits refers to those compensations offered to employees that are not included in their direct salary package. These can take the form of services, facilities or advantages that improve the quality of the professional and personal life of employees. From medical insurance for employees to professional development programs, and up to insurance of life for employees or at accident insurance for employees who work in dangerous environments, extra-salary benefits are designed in such a way as to bring an added value to the employee, beyond the financial remuneration of the work established by the employment contract.

• Brief history and evolution of the concept of employee benefits

The concept of extra-salary benefits for employees is not new. It has evolved over time, adapting to socio-economic changes and employee expectations. If in the past, a simple bonus or health insurance was enough, today employees are looking for jobs that can offer more diversified and personalized extra-salary benefit packages.

• Why are extra-salary benefits important for employees?

Extra-salary benefits for employees play a crucial role in the employee retention strategy. They demonstrate that the employer is willing to invest in the well-being of its employees, which can lead to an increase in job satisfaction, loyalty and productivity. Furthermore, employee benefits can be a deciding factor for a candidate choosing between several job offers.
Therefore, extra-salary benefits are more than simple indirect financial advantages; they represent a recognition of the value that employees bring to the company and a means by which employers can build a strong and sustainable organizational culture.

2. The main categories of extra-salary benefits for employees – the top of benefits for employees according to the fields of activity

The diversity of extra-salary benefits for employees reflects the complexity of their needs and expectations within an organization. These benefits can be classified into several categories, each having its own role in improving the quality of the professional and personal life of employees.

The range of extra-salary benefits that employers can grant is vast and varied. However, most of the facilities in this range fall into the following main categories:

• Benefits for employees related to health

Among the most popular such benefits for employees are health insurance for employees signed by the employer on behalf of the employees. These policies cover the costs of medical services in private clinics, giving employees quick access to high quality care.

Subscriptions to sports / fitness halls, dental clinics or recovery centers offered free of charge by some companies also fall here.

A special category of benefits for employees, of a non-salaried nature, is represented by accident insurance for employees subscribed by the employer, especially in the areas where the degree of dangerousness of the jobs is high.

A separate category is represented by life insurance for employees which can cover, in addition to the risk of death, other risks nature such as disability, surgical interventions, serious or professional illnesses, temporary or permanent incapacity for work, etc.

• Additional financial benefits for employees

Meal vouchers, gift vouchers, holiday vouchers, annual premiums, performance bonuses, all belong to the category of extra-salary financial benefits.

Some employers also provide benefits such as access to advantageous bank loans or private savings schemes.

Also in this category can be included bonuses for reaching certain key indicators, options to purchase or receive company shares for free, private pension plans.

• Professional development benefits

Considering the growing importance of learning and continuous improvement of skills, many companies offer benefits such as training sessions, training and professional training courses, coaching or mentoring programs. Other facilities in this category can be: offering access to educational materials, offering subscriptions to specialized publications, etc.

• Other categories of benefits for employees

Companies can also grant employees other benefits such as:

• Benefits related to free time such as additional paid days off, flexible work schedule, remote work, etc.
• Benefits related to personal well-being such as psychological counseling services, hot meals at the office, recreation rooms, massage at the office, etc.

Regardless of the category they belong to, extra-salary benefits are appreciated by employees because they offer them the opportunity to feel valued and to have a more balanced life. For example, employee health insurance can reduce stress related to medical problems, while professional development programs can stimulate personal and professional growth.

Choosing the right fringe benefits can be an art in itself, and the way they can be aligned with the company’s field of activity to maximize the positive impact on employees represents one of the strong points of attractiveness of the employing company.

Each sector of activity has its particularities, and the list of extra-salary benefits for employees must reflect these differences to be truly valuable. E.g:

• The IT&C domain

In this very dynamic and competitive sector, the most attractive benefits for employees aim at the following:

– offering medical insurance packages for employees which covers preventive and high-quality medical services;

– consistent financial bonuses based on performance;

– benefits related to free time such as flexible schedule, working from home, unlimited free days;

– professional development opportunities: courses, certifications, conferences;

• Domain of services

For companies active in the service field, the optimal package of benefits for employees could include:

– meal tickets/restaurants;

– subscriptions to gyms/recreational activities;

– offering customized packages of life insurance for employees and civil liability;

– discounts on the company’s products/services.

• Field of production

In the productive sector, the most appreciated extra-salary benefits tend to be:

– providing accident insurance for employees to cover risks specific to workplaces;

– generous annual bonuses and premiums;

– settled transport or company cars;

– modern protective equipment and improved working conditions.

• Commercial domain

Extra-salary benefits such as:

– shopping vouchers/discounts for the company’s products;

– weekends and extended holidays;

– hot meals at the office;

– professional development: sales courses, customer relationship management, etc.
In essence, the most valuable benefits for employees are those adapted to their specific needs and expectations in relation to the field and work tasks.

By offering a diverse package of employee benefits, companies can create an attractive work environment and significantly contribute to their satisfaction and loyalty.

3. Private health or life insurance – advantages and disadvantages for employees and employers

In a labor market dominated by dynamism and competition, employers are always looking for effective methods to keep their valuable employees and to attract new talents. Private health and life insurances represent an increasingly sought-after extra-salary benefit, offering significant advantages for both employees and employers.

Purchase by the employer of customized packages of health insurance for employees can bring many benefits for the employer:

– attracting and retaining the most valuable employees by offering a competitive salary package;

– increasing work productivity by ensuring fast and quality medical services for employees;

– reduction of long-term costs generated by medical leaves and employee absences;

– improving the company’s image and reputation as a “top employer”;

– possible tax benefits through the deductibility of insurance premiums from the calculation of the profit tax.

Also, protecting staff with life insurance for employees is a valued benefit, which brings the following advantages to the employer:

– increases the loyalty and motivation of employees by showing concern for the well-being of their families;

– increases the attractiveness of the company for young talents;

– improves relations with social partners and unions;

– the successful implementation of the principles of corporate social responsibility.

In addition, the provision of accident insurance for employees represents a major competitive advantage, which brings the following benefits:

– covers the costs of treatment and rehabilitation in case of accidents, relieving the employer from this point of view;

– increases the degree of safety and protection for employees, motivating them additionally;

– reduces the risk of litigation and malpractice lawsuits against the company;

– avoid the negative impact of serious accidents on productivity and performance;

– contributes to a strong organizational culture centered on caring for people.
In essence, generous fringe benefit packages demonstrate the employer’s appreciation for the employees’ efforts and represent smart investments for the entire company. The inclusion of a life insurance for employees and accident insurance in the benefits package demonstrates a deep concern for their safety and security. These can contribute to the creation of a sense of belonging and to the consolidation of an organizational culture based on trust and mutual respect.

Similarly, employee health insurance can serve as a powerful motivator, giving employees peace of mind that their health and that of their families is protected. This can lead to greater concentration on work and increased productivity.

4. Extra-salary benefits – implementation and personalization strategies

The efficient implementation of extra-salary benefits requires careful planning and a strategic approach. In the following sections, we’ll explore ways employers can choose and customize benefits to maximize employee satisfaction and support company goals.

• How to choose and customize employee benefits?

Customizing extra-salary benefits is essential to meet the diverse needs of employees. Employers must carefully assess the team’s needs and offer benefits that are relevant and valuable to them. For example, a program of medical insurance for employees can be adapted to include specific services that are particularly requested by employees.

• Effective communication of employee benefits

A clear and transparent communication is crucial for employees to understand and appreciate the value of extra-salary benefits offered. Employers should use effective communication channels and ensure that employees are aware of all available benefits and how they can access them.

• Creating a work environment based on recognition and appreciation

A work environment in which employees feel recognized and appreciated can be strengthened by well-thought-out fringe benefits. Employee recognition programs, such as those that offer life insurance for employees or accident insurance for employees, combined with other extra-salary benefits can have a positive impact on employee morale and commitment.

Looking to the future, it is clear that fringe benefits will continue to play a vital role in attracting and retaining talent. Innovations in the field of technology and changes in the dynamics of the workforce will lead to the emergence of new forms of benefits, personalized and aligned with the expectations of employees from future generations.

Therefore, it is essential that all business leaders, HR managers and decision-makers from state institutions and private companies recognize the importance of extra-salary benefits and engage in a continuous process of evaluation and improvement of the benefits packages offered. Through adaptation and innovation, organizations can ensure that they remain competitive and that their employees feel valued and motivated.