Fringe benefits are an additional, often non-monetary compensation for employees. They can be used to help set a company apart from its competition by offering benefits that other companies don’t offer. This differentiation helps in attracting hard-to-find talent.
Some common fringe benefits include health and life insurance. Other benefits can include a gourmet cafeteria (as is the case with Google), 20 weeks paid leave (Microsoft), commuter passes, gym memberships, and more. Fringe benefits help enhance the work environment for employees, making it a more desirable place to work. For this reason, and in addition to attracting talent, fringe benefits help retain and keep employees motivated.
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Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment.
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