Which of the following best describes fringe benefits in a compensation plan?

Fringe benefits are best described as rewards that are not monetary but enhance the employment package. These benefits typically include various non-wage compensations such as health insurance, retirement plans, paid time off, childcare assistance, and other perks designed to improve employee satisfaction and well-being. They play a crucial role in attracting and retaining talent, as they can significantly increase the overall value of a job beyond just the salary.

In contrast, direct payments for work performed refer specifically to salaries or wages, while overtime payments pertain to additional compensation for work beyond standard hours. Adjustments made to base salaries involve salary increases or modifications based on performance, market conditions, or internal equity but do not encompass the broader range of non-monetary benefits that fringe benefits represent. Thus, defining fringe benefits in the context of non-monetary rewards underscores their importance in a comprehensive compensation strategy.