What are employer-sponsored concierge benefits?

Concierge benefits are timesaving services that employers offer in an effort to help employees balance their personal and work lives. Typical services include dry cleaning, meal catering, child care arrangements, automobile services (oil changes, car wash, etc.), event tickets, and other tasks employees don't have time to do or don't want to do.

Employers benefit from increased employee productivity by reducing the amount of time employees may be spending on nonwork-related activities during the day. These types of work/life benefits can also help employers in recruitment and retention efforts and increase employee satisfaction.

According to the 2018 SHRM Benefits Survey, 3 percent of employers offered concierge services, and, in 2016, almost one-third of Fortune's 100 Best Companies to Work For offered concierge services to employees. Depending on the size of the employer, full-service concierge benefits can range in cost from $3 to $8 per employee per month. Employers can contract with a vendor who specializes in these services or hire their own company concierge to coordinate the services in the same manner as a hotel does for its guests.

The employer usually covers the cost of the concierge while employees are responsible for the actual expenses for the service (e.g., dry cleaning). If an employer chooses to reimburse or provide vouchers for the services themselves, the value of the benefit would become taxable income to employees and would need to be reported on their W-2 forms. Employers should consult a tax professional for more guidance on the tax treatment of concierge benefits.