Employee Benefits: Why Your People are the Backbone of Your Business.
Your people are the crucial system underpinning your organization’s ability to grow and thrive. So how crucial are employee benefits to achieving your company’s goals and objectives? They are extremely important.
What are employee benefits?
We often get asked – what are employee benefits? Employee benefits, also known as perks or fringe benefits, are provided to employees over and above salaries and wages. These employee benefit packages may include overtime, medical insurance, vacation, profit sharing and retirement benefits, to name just a few.
Why are employee benefits important?
Offering benefits to your employees is important because it shows them you are invested in not only their overall health, but their future. A solid employee benefits package can help to attract and retain talent. Benefits can help you differentiate your business from competitors.
Employee benefits can improve your company’s bottom line by engaging employees to participate in wellbeing programs, such as Virgin Pulse. Healthier employees mean reduced healthcare costs for your organization. Employees with fewer health risks experience fewer sick days, fewer trips to the doctor, and spend more time working in your organization, bringing their best selves to work every day.
Employee Benefits Plans
Depending on the type of organization and the job, employee benefits may be quite different. For example, government employee benefit packages for full-time employees look very different from the packages offered to part-time employees. Employee benefits packages are typically discussed during the final interview or at the time an offer is extended. The right benefits package can give you a distinct advantage in competitive recruiting situations.
Each state in the USA is different; however, there are some basic benefit laws all employers must follow. Required benefits include:
- Provide employees time off to vote, serve on a jury and perform military service
- Comply with all workers’ compensation requirements
- Pay state and federal unemployment taxes
- Contribute to state short-term disability programs in states where such programs exist
- Comply with the Federal Family and Medical Leave (FMLA)
Employers are not required to provide:
- Retirement plans
- Health plans (except in Hawaii)
- Dental or vision plans
- Life insurance plans
- Paid vacations, holidays or sick leave
Popular employee benefits
- Benefits include, but are not limited to:
- Health Insurance (medical, dental & vision)
- Sick leave
- Retirement plan including company contribution/matching
- Wellbeing program that offers incentives for both individuals and families
- Profit sharing
- Transit benefit allowance
- Gym reimbursement
- Tuition or student loan contribution
- Salary increase
- Flexible working hours, including options to work from home
- Disability insurance