Supplemental compensation outside of base salary or wages, offered at the employer’s discretion, enhances the overall compensation package. Examples include health insurance, retirement plans, paid time off, employee assistance programs, tuition reimbursement, and flexible work arrangements. These offerings can vary significantly between organizations based on factors like industry, company size, and financial performance.
These additional perks play a vital role in attracting and retaining talent, boosting employee morale and productivity, fostering a positive work environment, and potentially reducing turnover. Historically, such offerings have evolved from basic provisions to comprehensive packages reflecting changing societal needs and expectations within the workforce. Their strategic use can contribute to a competitive advantage for employers in the talent market.
