Defining Accommodation and Enhancement Benefits

Accommodation and enhancement benefits are discretionary offerings that support employee and family well-being, family assistance, education, and daily living. Employers provide these benefits because the long-term costs of absenteeism and tardiness often exceed the expense of offering programs that improve attendance. Many employees face health-related challenges—such as smoking, alcohol use, or obesity—that reduce productivity, so employers may offer programs to promote healthier lifestyles.

Educational benefits like tuition reimbursement and scholarships help employees gain skills and credentials, while also giving employers greater staffing flexibility and minimizing the risk of obsolete skills. These opportunities allow employees to pursue personal growth and advance within the company. Additionally, employers often receive tax advantages for offering these benefits, while employees may also enjoy tax savings. However, the scope of tax benefits varies depending on the specific program.