Employee benefits are an important component of an effective compensation strategy. In modern times when employees can no longer be motivated by just monetary incentives, such benefits help to ensure that they feel inspired to contribute to the business's success. This article will list down the 12 most popular employee benefits that every HR practitioner must know.

Employee Benefits Worth Knowing

An organisation must take note of the following incentives if they want to stay ahead of the competition in terms of productivity and market reputation:

Health Insurance

Employers offer this common benefit to help employees pay for medical expenses, including hospitalisation, surgery, and routine doctor visits. Dental and vision riders are also included.


It is a lump sum payment made by an employer to an employee as a reward for the employee's long and meritorious service. It is provided by the employer to the employee upon the termination of their employment for financial security.

Retirement Benefits

This includes pension plans and other retirement savings plans that allow employees to save for their future.

Paid Time Off

It refers to paid vacation days, sick days, sabbaticals, and personal days that employees can use to take time off from work.

Flexible Work Arrangements

The pandemic has ushered in a new normal, and the staff now prefers flexible schedules, telecommuting, and job-sharing arrangements that allow them to balance work and personal responsibilities.

Educational Assistance 

This is a benefit that provides financial assistance to employees who are seeking to further their education in the form of tuition funding, loan assistance, or professional training and certifications. Employers who support training and development needs of employees are able to reap long-term advantages.

Food and Beverages

The employer can take care of the employees' nourishment by providing free meals, coffee, snacks, canteen assistance etc., at work. Moreover, a meal allowance policy can also be implemented to reimburse food expenses incurred during business travel or client meetings.

Employee Recognition

Awards, gifts, bonuses, and outings can be planned to reward the high-performing staff. This will create healthy competition within the organisation and boost morale.

Wellness Programs

Under these programs, firms provide resources to help employees maintain a healthy lifestyle, such as gym memberships, wellness classes, and health screenings.

Employee Assistance Programs

With these programs, firms provide counselling, legal advice, financial literacy coaching, and other support services to employees in times of need.

Employee discounts

This benefit gives employees discounts on products and services offered by the company or its partners, enabling them to afford their desired lifestyle.

Commuter Allowances

These include company vehicles, reimbursing for public transportation and parking costs or carpooling.

Final Thoughts

This employee benefit list is not exhaustive and may differ depending on the type and size of the organisation, as well as the country. It is equally crucial to examine employee feedback after perks have been provided to determine whether they are being utilised. Although the aforementioned benefits are advantageous for both businesses and employees, putting employee welfare first will lead to long-term success. Sodexo is one of the top solution providers for employee benefits in India. They offer various digital options like the meal pass, cafeteria pass, premium pass, and multi-benefit pass to deliver perks related to meals, recognition, gifting, fuel, development, telecom, etc. In addition to availing of tax benefits, employees can also use these cards for increased freedom of choice. Along with the 25 years of expertise, their 24*7 customer support and next-gen mobile app have made them a market leader in the employee benefit space. So, what are you waiting for? Get in touch with them now!