Non-Traditional Benefits


Thereare various benefits, which an entity can offer other than themedical benefits. Among these benefits are the fringe benefits.Fringe benefits are those benefits that often take the form ofproperty or service given by an employer to workers as compensationfor outstanding performance by the employee. Again examples of fringebenefits by a company may range from being given a company car to usefor personal purposes all the way and not limited to a membership ina social or county club. Mc Donald’s for instance, has offered toprovide fringe benefits to its workers in its 1500 outlets in theUnited States as a way of responding to competitive pressure and tothe labor campaigns that have recently attracted the public’sattention to its policies (Storm, 2015).

According to the article, McDonald’s to raise Pay at Outlets It Operates,written by Stephanie Storm, the chief executive observed that it wasimportant to offer fringe benefits to the company’s employees asthis motivates them (Storm, 2015). The article points out that amotivated work force is undoubtedly a benefit to the company. It iscritical to motivate employees as this helps in making them moreproductive. As employees are motivated to work in a given company,the company is likely to benefit from attracting skilled workers, whohelp in enhancing productivity.

Thereare several benefits that a company tries to reach out for, whenoffering fringe benefits to its employees. One of these benefits andamong the most valuable one is creating a well motivated workforceand at the same retaining top talent (Schermerhorn, 2010). It shouldbe noted that human resources use fringe benefits as a tool ofretaining top talent since employees would always tend to seekemployment, where they know they will receive various benefits. Toptalent in a company is by any means an asset since top talentpromotes productivity and creativity. In many instances, employeeshave often left jobs or even accepted them depending on the qualityof the fringe benefits.

McDonald’s, according to the article, intends to expand a programaimed at helping employees of its restaurants as well as those run byfranchisees (Storm, 2015). The program is based on taking theemployees to online classes towards getting high school diplomas. Inthis way, the company intends to cover the expenses and help theemployees pay for their college tuition. Considering this fringebenefit being offered by Mc Donald’s, it is evident that there willbe benefits on the side of the workers as well as the company.

Byoffering this sponsored tuition, Mc Donald’s is able to retain itstop talent, as well as increasing the efficiency of its work forcethrough improved literacy. Other than that, it is also an advantageto the company in that they are better positioned and on an elevatedground when it comes to dealing with their competitors. This reallycompliments the company’s attempt to achieve its mission making ita crucial tactical strategy towards dealing with competition. On theother hand, when the employees are happy with the way the company istreating them they are able to concentrate on making theirperformances even better.

Employeeloyalty is an added benefit to the company and it is easily generatedby offering fringe benefits. Once employee loyalty is established ina company, it makes it more difficult for opposing or rival companiesto keep pace (Schermerhorn, 2010). The result of motivated employeesis usually that they tend to own the company and the company’smission. This way they personalize their work and they identify witheverything that the company stands for. This is usually a positivething in that it is hard for rivals to defeat the company.

Employeesseem to respond very positively to this bid by the Mc Donald’scompany. The fact that there are those who could not have been ableto raise enough tuition fees to pay for their high school educationand now have the chance to pursue their education is most certainlygood news. Such a move by the company is definitely aimed atincreasing employee loyalty. It is usually a wise decision when agiven company attempts to reach out to its employees and show themthat they care. In addition to this, Mc Donald’s Company has alsopledged to the expenses of these selected employees who qualify forthe sponsorship. This is most certainly an act to cement the employeeloyalty approach as humanly most of these employees will feelobligated to at least give back to Mc Donald’s what Mc Donald’sgave to them freely.

Nevertheless,the fact that this fringe benefit has been offered to a number ofemployees in the Mc Donald’s outlets does not mean that the war hasbeen won though. Actually, it is far from it because according to thearticle, only a very small percentage of employees are the ones whowill benefit from this move by Mc Donald’s. It is, however, a goodstart and a good strategy especially considering their outlets hadstarted dwindling.


Schermerhorn,J. R. (2010). Exploringmanagement.Hoboken, N.J: Wiley.

Storm,S. (2015, April 1st).McDonald’sto Raise Pay at Outlets It Operates. NewYork Times.Retrieved from