The Four Major Types of Employee Benefits All Workers Need

Employee benefits, also known as fringe benefits or perks, are given to employees over and above their wages and salaries. Benefits not only let your employees know that you are invested in their health but that you also care about their future. Therefore, a good employee benefits packages will not only help you attract talent but also retain it.

There are many perks that you can offer your employees to keep them motivated and productive. However, there are four major types of benefits, that if offered, could help improve their job satisfaction and ensure they stay loyal to you. These benefits include:

Medical Insurance

One of the most important and most common types of benefits you can offer your employees is medical coverage. The costs of hospital and doctors’ visits, prescriptions, health insurance, vision care, and dental care have increased considerably over the last few years. As a result, employees are finding it harder to cater to healthcare-related costs.

Since an unexpected medical expense can easily and quickly cripple an uninsured employee, most talented workers today have been cultured to expect, at the very least, a basic medical cover. As an employer keen on retaining your workforce, you need to consider helping out your employees with some of these expenses by offering them a savings plan like the Health Reimbursement Account. Such accounts cover eligible expenses like:

• Eyeglasses and contacts
• Copays and prescriptions
• Daycare expenses
• First aid kits

Life Insurance

Another common yet essential employee benefit is accidental death and dismemberment insurance or life insurance. This coverage helps ensure that the families of workers who lose their lives get the funds they need to cater to funeral costs and move on with their lives.

AD&D or accidental death and dismemberment insurance provides a lump sum payment if a worker’s dismemberment or death is the direct result of an accident. If a worker has both AD&D and life insurance and they die or get dismembered in an accident, then both covers will pay benefits to the worker’s beneficiaries or family.

Disability Benefits

Both long-term and short-term disability benefits can help protect employees from the financial implications that arise after a lengthy illness or after suffering a serious injury. Disability insurance pays benefits to injured workers throughout the duration they aren’t at work.

Short-term disability coverage pays a percentage of the injured worker’s salary if they are unable to work or become temporarily sick. Long-term disability coverage, on the other hand, covers workers with more severe injuries or permanent illnesses that keep them out of work for over three months or longer – that includes permanent disabilities that make it impossible for them to return to work.

Retirement Benefits

When it comes to retirement benefits, the 401(k) plan is one of the most common types of benefits that you can offer your employees to help them secure their future once they retire. 401(k)s allow employees to dedicate a certain percentage of their monthly pay to a retirement account in a tax-advantaged manner. The monies saved in a 401(k) are not taxed until after the worker retires.

Employee Benefits – Perks for People Who Work There

In general, employee benefits and compensations include different kinds of monetary compensations given to employees as well as their regular salaries or wages. These monetary or wage-based compensations are known as “compensation,” while benefits are not really monetary but services. For example, health benefits and insurance are not items meant to be traded for cash but rather services. Such services, however, may be offered in exchange for regular wages or salaries, which are the traditional means of employee benefits.

There are various employee benefits available. Medical and dental insurance are the two most popular. Employees can choose health insurance on the basis of their family’s medical history or their own. They also have the option of dental insurance for themselves or their families.

Vacation days are often paid holidays. Employers stand to benefit from including vacation days in employee benefits packages. Most employees enjoy the holidays and are willing to work longer hours to make it there. The fact that there are so many employees willing to work additional hours shows that employers stand to benefit from providing holiday pay.

When people think about employee benefits, different types of benefits are probably not the first things that come to mind. However, when people think about employee benefits, it’s usually the health insurance and the paid holidays that they think of. However, other types of benefits can be valuable for small businesses. Small business owners should consider all of the different types of employee benefits to see what types of perks they might want to provide. Doing this will allow small business owners to have a great benefits package, which makes it easier for them to attract and retain qualified employees.

The pay, income, or salary of a job is why most people work for a living, but the employee benefits they also get matter a great deal too.