The Difference Between Perks and Benefits

Perks and benefits will always pique interest because they highlight what a company can offer. Benefits are guaranteed to full-time employees and perks are sporadic bonuses. Knowing the difference and asking the right questions maximize a job search. 

By Ciarra Maraj

Free private jets to commute, $2 million birthday parties, floor seats to New York Knicks games and country club memberships are all perks CEOs of top companies can receive. 

More pedestrian perks include the free in-office lunch 78% of companies offer or Spotify offering free premium subscriptions or discounts to retailers.

A perk is an intangible, says Liz Bronson, a people leader. It does not have monetary value but it helps with a work-life balance, she added. 

Benefits are out-of-pocket expenses an employer helps pay for, said Shayna Webb, a human resources manager.

Health insurance is a benefit example. Some companies pay 100% of it, and others have low-cost co-pays. Regardless, having a job with health benefits is cheaper than paying out of pocket.

Benefits and the Job Search 

Applicants should remember that a company needs them as much as they need the company. Asking about benefits is not a bad thing, but wait until the offer stage. 

Bronson says before worrying about benefits, take a step back and consider this question: “What do you need out of a job in order to make your life work?”

“That is something that you need to know because the company can't know for you,” Bronson said. 

Calculate out-of-pocket expenses instead of focusing on income. Benefits packages are in addition to the overall salary but do not take compensation for face value. Consider out-of-pocket costs, Webb said. 

“I've had a lot of candidates that we sat down and they've looked at an offer of $50,000 and then looked at an offer of $55,000 and they automatically wanna go with the offer of $55,000 without looking deeper into the [benefits] package. And that's a red flag,” Webb said. 

The offer of $55,000 can require a $700 annual out-of-pocket cost on health insurance while the offer for $50,000 can require a $100 annual out-of-pocket, she added. 

A high salary and all-expense paid benefits package are possible. But beware that full benefits packages are not always laid out in the job description. 

Research the company and ask clarifying questions about benefits during the pre-screen with a recruiter. However, do not make benefits the motivating factor to seek an opportunity. The best time to ask about benefits is during the offer stages. 

Overall, do not be afraid to ask questions about nonnegotiables, because it avoids time being wasted, Bronson said. 

“Ask the absolute necessary questions at the beginning,” Bronson said. “And then as you go through, you're gonna have opportunities [to ask more], but do not sign until you've had all your questions asked and you feel really good about it.” 

Full-time employees of a company are entitled to the company’s full benefits package. Part-time employees may receive PTO based on the hours they work. In some retail companies, part-time employees may receive an hour of PTO for every 40 hours they work. 

Some companies offer low-cost health insurance or a 401k plan to contract employees. 

Perks are given at a company’s discretion. Remember this during a job search. 

Decide what type of worker to be and what is right for your needs. After all, it is a candidate-driven market. Do not be afraid to ask questions or walk away from an opportunity that might not work. 

Top Takeaways

The Difference Between Perks And Benefits

• Perks are bonuses that an employee is not entitled to. 
• Benefits are paid expenses that employees are entitled to when they join a company. 
• Benefits are not deducted from salary. 
• Consider out-of-pocket expenses before worrying about the salary. 
• Do not be afraid to ask clarifying questions.