- Health Insurance Benefits. This one is a no-brainer. …
- Life Insurance. …
- Dental Insurance. …
- Retirement Accounts. …
- Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs) …
- Paid Vacation and Sick Time. …
- Paid Holidays. …
- Paid Medical Leave.
In today’s competitive workplace, employers are increasingly looking for ways to attract and retain the best talent, and one of the most attractive benefits they can offer is a comprehensive and competitive benefits package. Benefits packages are an important part of your total compensation, and can make the difference in a job decision. A robust package of benefits helps employers create a work environment that supports individual employees and their families. By offering competitive advantages, companies can attract and keep the best talent, which can lead to increased employee engagement, improved morale, and increased productivity and profitability. Benefits packages should reflect the values and aspirations of both employees and employers, and can include a variety of benefits that are tailored to meet the needs of a diverse and changing workforce. From health and wellness benefits to financial incentives, there is an opportunity to create a unique and competitive benefits package. In this blog post, we’ll explore various types of workplace benefits, their importance, and how to create a competitive benefits package.
HR Basics: Employee Benefits
What are workplace benefits?
Employers compensate their workers through workplace benefits to entice them to work for them. Employees receive benefits in addition to their salary and wages. An employee may pay for benefits like health insurance out of pocket but save money by purchasing it through their employer.
Organizational-oriented benefits are specific policies and rewards that the company chooses to offer. Benefits have one of two structures. The employee can choose options that suit them thanks to this structure. For instance, if a company offers health insurance, it might have tiers so that employees can choose the level of coverage they want. The employee customizes their benefits package in accordance with a predetermined fund the employer provides for benefits under the other structure, which is consumer-oriented.
18 examples of workplace benefits
Here is a list of typical items found in a benefits package to help you better understand the benefits you can provide or the job perks an employer might provide to you:
1. Paid time off
Employees who have paid time off (PTO) have the option of receiving a day’s pay without reporting to work. This includes sick days and vacation days. Employers give employees a predetermined amount of PTO to use throughout the year. Sometimes employers add unused PTO into a new years balance.
Additionally, PTO may be accrued, which means you accumulate paid time off while working. This enables employers to provide this benefit as compensation for their employees’ dedication to the business.
2. Health insurance
Many workers have access to health insurance through their employers, which can help keep medical costs down. Health insurance is a benefit that frequently has tiers for employees to select from because, depending on the coverage they select, they may have to deduct a small amount from their pay for their health insurance policy.
Health insurance assists in covering doctor’s visits, emergency care, prescription drugs, and specialty physician examinations.
3. Life insurance
A life insurance policy is one that pays out money to beneficiaries after the policyholder passes away. This gives employees reassurance that their family receives assistance. For this insurance, businesses can provide competitive quotes and cover a portion of the premium. A life insurance policy is practical and reassuring if you have a family or provide for others.
4. Dental insurance
Dental insurance assists in defraying the cost of any necessary dental work, such as fillings, veneers, or root canals, as well as examinations by dentists. Similar to health insurance, dental insurance provided by companies is significantly less expensive than private insurance. Your well-being depends on having a healthy mouth, so having insurance coverage for this service is important.
Companies might not offer this benefit in tiers because dental care is less varied and costs are uniform.
5. Vision insurance
Vision insurance is for your eye health. Costs associated with eyewear, eye surgery, and routine examinations are covered by vision insurance. Receiving funding from employers to cover the cost of healthcare is very motivating for employees.
6. Retirement benefits or accounts
When accepting a job offer, consider your plans for retirement. After you stop working, retirement benefits like 401K accounts can help with financial support. Retirement accounts assist you in planning and hold you responsible for retirement savings. Sometimes employers will match your retirement fund contributions, or they will encourage you to save by transferring a certain amount into a savings account each pay period.
7. Healthcare spending or reimbursement accounts
Healthcare accounts are either arrangements for you to be reimbursed for healthcare costs or accounts that can help you avoid paying for healthcare. Because not everyone is always qualified for these types of accounts, employers may assist in setting up these accounts or give you one, which is advantageous. Here are examples of healthcare spending or reimbursement accounts:
8. Long-term disability insurance
If you are disabled from working for a long time due to an illness or injury, long-term disability insurance can help you maintain your income. You can be covered by long-term disability insurance for five to ten years. This is distinct from workers compensation, which pays you money if you get hurt at work. Disability usually pays a percentage of regular wages.
9. Short-term disability insurance
Short-term disability insurance is a policy that pays you if you are unable to work as a result of an illness or injury. Short-term disability typically lasts three to six months. To be eligible for payment, you must have a doctor’s note stating that you are unable to work due to an illness or injury.
10. Tuition reimbursement
As a benefit, your employer may pay a portion of your educational costs through tuition reimbursement. The cost of a degree, study course, or certification exams can be included. An employer might occasionally provide this perk to encourage staff to pursue higher education. This is a typical perk for professions requiring professional certifications, like engineering, electrical work, and accounting.
11. Childcare benefits
Any assistance a company provides to employees to help cover childcare costs, such as daycare, or making arrangements to accommodate parents and guardians, such as paid leave, are considered childcare benefits. This perk is becoming more and more well-liked and is helpful for keeping employees. Here are examples that childcare benefits may include:
12. Wellness programs
Wellness initiatives aim to improve the health and happiness of employees. A wellness program may include a gym on site, an exercise area, or a course to inform staff about their physical and mental health. It may also include balanced meals in the cafeteria.
Offering a wellness program demonstrates a company’s concern for its staff and desire to enhance their quality of life.
13. Gym memberships or discounts
Sometimes, a business will offer a free gym membership or a discount to encourage staff to maintain their health if it doesn’t have enough space for its own recreational area but still wants to promote health. This might be an added benefit or a component of a wellness program. A gym membership may encourage you to be more active and assist you in achieving your health goals.
14. Employee recognition programs
Employee rewards for particular actions and accomplishments are given through employee recognition programs. Offering rewards like praise, small prizes, or cash compensation encourages workers to complete tasks quickly. Additionally, the business gains from this as they become more productive and efficient.
When you first start working for an employer, they might let you know about their employee recognition program, but this is also a perk that the business might add later.
15. Relocation assistance
To help employees move to a new home in order to work at a particular location, employers often provide relocation assistance. Benefits from relocating may include financial assistance for travel, lodging, education, and leisure pursuits like gym memberships.
Relocation benefit packages are typically discussed during negotiations if a company asks you to relocate for work in order to persuade you to do so.
16. Commuting/travel assistance
Employers provide financial aid to employees who go on business trips in the form of commuting or travel assistance. If your employer provides you with commuter assistance, it could be in the form of a company car, reimbursement for your mileage, or cash payments to help you get to and from work.
For project managers who may travel to job sites to monitor construction, this kind of benefit is typical. Additionally, business representatives travel for conferences and client meetings.
17. Telecommuting options
When employers provide the option of telecommuting, workers can do so from home. This job may be entirely remote or partially remote with some in-office responsibilities. Jobs are more accessible with telecommuting options, and it can be very motivating for staff members.
You might need a laptop and dependable internet if you telecommute to work so that you can virtually attend meetings and finish your work tasks online.
18. Workplace perks
Workplace perks can also include amenities that enhance your working environment, like exercise and recreation areas for staff. Additionally, employers occasionally purchase lunch for staff members and provide coffee in the break room. Other workplace perks include:
What are the 4 major types of employee benefits?
Medical insurance, life insurance, disability insurance, and retirement plans are the four main categories of employee benefits that many employers provide. Below, we’ve provided a general definition of each of these categories of employee benefits.
What are two examples of work benefits?
- Medical insurance.
- Life insurance.
- Disability insurance.
- Retirement contributions and pension plans.
What are the most important benefits for employees?
- Remote work. Despite the fact that Covid has made remote work necessary, there are advantages for both employers and employees.
- Healthcare. …
- Paid time off. …
- Flexible hours. …
- Paid family leave. …
- Four-day work week. …
- Free food in the office. …
- Student loan assistance.