Perquisites, often abbreviated as "perks," refer to non-monetary benefits or advantages that are provided to an individual in addition to their regular salary or remuneration package. These benefits are typically offered by an employer to attract and retain employees, demonstrating appreciation for their services and contributions. Perquisites can vary widely depending on the organization and the individual's position within it.
Perquisites typically encompass a range of offerings, including but not limited to company cars, expense accounts, club memberships, housing or housing allowances, health insurance, pension plans, stock options, educational assistance, and free or discounted products or services provided by the employer. They may also include amenities such as on-site gyms, childcare facilities, flexible work arrangements, and vacation time or holiday bonuses.
Not all employees may receive the same perquisites, as they are often determined by factors such as seniority, job level, and performance. Additionally, perquisites may be subject to certain conditions or limitations, such as personal usage limits on company-provided services or reimbursement policies.
Perquisites serve as incentives to motivate employees, enhance job satisfaction, and encourage loyalty to the organization. However, they can also be perceived as a symbol of hierarchy and inequality within the workplace, especially if there is a significant gap between the perquisites received by individuals in different roles.
Overall, perquisites are additional privileges, benefits, or opportunities offered to employees beyond their basic salary, contributing to a comprehensive compensation package and aiming to improve job satisfaction and employee retention.
