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Beyond a Paycheck: What are Corporate Benefits and Why Do They Matter?

corporate benefits

You have pushed yourself and worked hard to earn your degree, and hopefully, your reward is a great gig with a fat paycheck. That’s the plan, anyway.

But what defines a “great” job? Most young people would agree compensation is everything. If an employer can offer you a meaningful nine-to-five that makes your financial dreams come true, you’re in.

In reality, it’s a little more complicated than that. But don’t worry, you don’t need another degree just to understand corporate pay and benefits. Here’s an overview of what you can expect to find out there.

What are Corporate Benefits?

Getting paid doesn’t just mean receiving money. Businesses compensate talent (that’s you, by the way) in a number of ways. One of those ways is corporate benefits.

Benefits from your employer fall into 3 categories: Mandatory, Voluntary, and Fringe.

Mandatory benefits are those that a business must, by law, provide. They ensure the safety and well being of employees by guaranteeing workplaces are safe, and at least some assistance is provided in the case of non-work-related injuries, unexpected unemployment, a new baby’s arrival, and even natural aging. These benefits include:

  • Social Security taxes
  • Workers Compensation
  • Health Insurance (as of 2015, this is no longer an optional benefit for companies with more than 50 employees)
  • Disability Insurance
  • Unemployment Insurance
  • Family and Medical Leave

Some of these benefits may seem intangible to you, at least for a while. You likely won’t be retiring and collecting Social Security very soon, for example, so it doesn’t directly benefit you for your employer to “offer” Social Security taxes as a benefit. However, when you’re too old to work and that monthly assistance rolls in, you’ll be glad your early employers were compliant with paying into the pot.

Voluntary benefits are the additional advantages that companies use to attract and keep the best employees. These are often thought of as the gifts or bonuses that show appreciation beyond financial compensation. They are a business’s chance to be thoughtful and put employees’ needs above their own in considerate ways. They may include:

  • Gym membership or on-site fitness center
  • Use of a “company car” or “work phone,” even after hours
  • Meals
  • Tuition reimbursement
  • Stock options
  • Adoption assistance
  • Employee discounts

Fringe benefits may be novel perks that set a business apart from its competitors. Some companies get really creative to lure and retain great talent. Target Corporation, for example, offers professional mentoring. Tom’s of Maine has a pet-friendly work environment. Burton Snowsports gives each employee an organic garden plot on-site to cultivate healthy goodness.

Believe it or not, workers aren’t the only people who benefit from corporate perks. Your new employer wants more than to simply hire you, they want to keep you for the long haul. Employee turnover is expensive in many ways, and businesses save money by keeping workers happy, so with job benefits, everyone wins.

If you’re like most students, you’re looking ahead to what’s next and wondering, “What are corporate benefits?” Degree in hand, many young professionals are anticipating that next step: landing a great job. The only thing left to do is get a handle on what great compensation looks like. Look for an employer whose choice in perks lines up with your values, and reap the rewarding partnership of true, lasting benefits.

As you conduct your job search, you may be carrying multiple forms of debt that drag you down. Call CESI Solutions to discuss your options today, so you know you’re starting your career on the right track.

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