If your employees are delivering the services you have employed them to do, note that they expect more from you. They probably would like to know what else you are bringing to the table, or else they have a reason to seek new opportunities. These days, to retain the best talent in your workforce, you have to offer your employees something more. Employment benefits refer to any perks provided to employees in addition to their salary, for instance, medical insurance, life insurance, retirement benefits, fringe benefits, among others. Employee benefits mean a lot to the employees since it shows them that you contribute to a useful course in their lives. Let’s look at the main types of employee benefits.
Medical insurance or benefits covers healthcare costs. It comes in terms of health, vision, and dental insurance. Health insurance takes care of the physician’s/surgeon’s fees, hospital room, and prescription drugs. The vision and dental insurance may be offered separately or may not be provided depending on an employer to employer. The employer can pay a part or all of the medical insurance premium, and the employee pays a certain percentage. All three insurance bundles benefit companies differently, so it is up to you to discuss what is best for your employees with your insurer.
Retirement benefits refer to the funds set aside to help an employee when their career ends. Employee retirement benefits fall under two classes. One is the defined benefit plan, also known as a pension plan, whereby the employee’s salary and years of service predetermine the benefit amount. Here, the employer bears the investment risks. The second one is the defined contribution plan whereby there are specific contributions tied to the returns of an investment which have no guarantee.
Disability insurance protects your employee from any unforeseen circumstances that may see them not working for some time. It replaces the income the employee is supposed to be earning but is not because of a disability. This comes in two types. Short-term disability insurance begins immediately or within a few weeks after an employee suffers an injury or disability. Usually, the employee will be given some paid weeks to recover. Long term disability insurance is given to the employee in case of a long term injury that leaves them unable to work. For instance, an employee who suffered a spinal injury because of an accident may be unable to work hence offered long term disability insurance.
Life insurance benefits an employee’s family when they die. The benefits are paid immediately to the beneficiaries of the policy, most likely children or spouse. Many companies determine if they will offer life insurance benefits to their employees, depending on the company’s size.
Paid time off
Paid time off is offered to employees to help the company remain competitive with other companies. Paid time off can be explained as when an employee receives pay even when not working, for instance, company holidays, sick days, and spent vacation time. Some companies combine the three models, while others separate them. In most cases, the employee accrues the paid time off for an extended period, and it can have monetary value behind it.
Today employee benefits have become the next battlefield on the scramble for talent in any industry.