Employee perks vs. benefits: what's the difference?

Published: December 8, 2023

To be successful in any industry, you need a team that supports your efforts. How can you keep your team engaged and productive? One of the most effective ways is by offering a compelling package of employee perks and benefits.

In this article, we’ll dig into perks versus benefits, with examples for each. Plus, we’ll discuss the key differences and advantages of implementing both for employees in your organization.

Defining the terms

Benefits provide for basic needs and security

They are the essentials for a high quality of life and ensure foundational protection.

Perks are extras or nice-to-haves

They provide enjoyment and convenience.

Examples of popular employee benefits

Need more help breaking down the difference between perks and benefits? Take a look below at some of the benefits that many employers offer.

Health insurance

Having access to packages that cover doctor visits, prescriptions, hospitalization, vision care, and dental care is important for employees. According to data from KFF, 93% of firms with 50 or more workers offered health benefits in 2022, a percentage that remained consistent over the previous 10 years.

Retirement contributions

This is another common option that employees expect. According to data from the US Bureau of Labor Statistics, retirement benefits were available to 94% of private-industry union workers and 68% of private-industry nonunion workers in 2023.

With 401(k) matching, which some companies do, employees contribute pre-tax income to retirement savings and employers match the contributions, which helps employees compound interest and grow their investment. Other available options include profit sharing and employee stock ownership plans.

PTO (paid time off) and leave

One of the most valued employee benefits is PTO, including vacation days and types of leave like sick leave or parental leave. About three-quarters of US workers surveyed say it’s very important for employers to provide paid vacation time, paid sick leave, and paid holidays, according to data published by QuickBooks Time in 2019.

Examples of employee perks

Beyond the basics, perks provide creative ways for companies to take care of their people and stand out to potential employees when they’re searching for a new job. Consider these options when building your perks program.

Wellness programs

In an era when we understand the roles of both mental and physical health, looking at the full wellness picture is a priority. In fact, according to a 2022 study from MetLife, 52% of employees say that health and wellness programs are a must-have for them to accept a new role—double the amount who said so pre-pandemic.

Flexible work

Remote work opportunities and flexible hours are options that many employees now expect to have. Data from McKinsey shows that 35% of US job holders are allowed to work full-time from home and an additional 23% are offered part-time remote work. When given the choice, most employees opt for flexible work arrangements.

Food and beverages

Whether you want to treat employees to lunches, order special meals, or organize happy hours, you can craft a program that meets your employees’ needs and improves their experience at work. One survey shows that 20% of employees rank the importance of free lunches above other perks.

The perks and benefits your employees want now

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Why invest in perks and benefits?

Providing compelling perks and benefits has advantages that affect employees individually and your organization as a whole. Here’s a closer look at what those advantages are.

Attracting top talent

With fierce competition for skilled employees, the benefits vs. perks conversation is increasingly important. Offering a good selection of both can make all the difference. According to data from The 2022 Global Benefits Attitudes Survey, nearly half of employees said their company's retirement programs and health care benefits were important reasons why they joined their employer.

Boosting retention

Winning the battle to bring in top talent is just the first step; success comes down to your organization’s ability to retain them. Not having good benefits like health insurance and PTO is the reason why 43% of employees leave their jobs, according to Pew Research Center. Thoughtfully designed perks and benefits enable companies to take care of employees and foster a great workplace culture.

Increasing engagement

A Gallup study published in 2023 found that there’s currently the lowest ratio of engaged to actively disengaged employees in the US since 2013. However, the report continues, providing valuable benefits and perks can help resolve this, as focusing on employee well-being and work-life balance has ties to better engagement.

Offer perks and benefits that your employees will love with Uber for Business

You can easily provide valuable perks for your employees with Uber for Business. These are some of the options you can choose from:

Commute options

Make it easy for everyone to get from point A to point B. Whenever your employees need a work-related ride, they can simply switch to their business profile in the Uber app and request one.

Learn more