Non-traditional vs Traditional Employee Benefits - Definition & Meaning

Published in Human Resources Terms by MBA Skool Team

What is Non-traditional vs Traditional Employee Benefits?

Non-traditional employee benefits/ Perks: Unique and innovative employee benefits offered by a company, keeping in mind the demographics and the needs of the employees. Such benefits encourage healthy work-life balance, fill the existing benefit gap and boost the morale of the employees. Perks, almost costs nothing to the employer while helping the employees to save money on a range of services.


  • On-site services such as cafeteria, fitness center, car maintenance, laundry, child care and others
  • Pet insurance
  • Banking discounts: Waived minimum balance, lower interest rates for loans.
  • Dry cleaning pickup
  • Legal referral programs and discounts


Non-traditional employee benefits prove to be successful when the employees value the benefit packages offered. Also, the benefits should be promoted in such a way that they are clearly understood by everybody. In such a case, they generally increase the perceived organizational support,commitment and the performance of the employees and decrease absenteeism and turnover.


Traditional employee benefits:Includes the standard offerings of a compensation package like-

  • Health insurance
  • Transportation reimbursement
  • Retirement accounts – 401(K) plan
  • Paid vacation days
  • Profit sharing- Bonuses

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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