For the majority of small businesses, the struggle to compete with big companies for talent in the market is quite daunting – especially when it comes to offering benefits. While recruiting and retention is critical to the survival of any organization, it’s difficult to know whether the benefits that you’re currently offering will help you retain your employees in the long run.
Apart from the money, employees want to know what you’re bringing to the table. By doing your best to offer your employees the best benefits, your business will not only grow but you’ll also become a successful leader. Today, we are going to share the nine types of employee benefits that you should be offering your staff. Let’s get started!
Employee benefit types
The term ‘employee benefits’ covers a lot of things in most businesses. However, it usually refers to a business’s compensation program which includes everything from health insurance to assist programs.
Employee benefits can be defined as the different forms of non-wage compensation that managers provide to employees in addition to their wages or salary. These are usually included in the job offer to aid in the attraction and retention of talent.
Employee benefits fall under three main categories namely:
- Mandatory employee benefits as stated by the law
- Non-mandatory employee benefits that are considered industry standards
- Employee benefits offered as added perks
Mandatory employee benefits as stated by the law
There are several employee benefits that all businesses are required to provide their employees by federal law. These benefits are standard across the nation and every employer must offer them to comply with the labor laws. They include:
1. Medicare and social security contributions
According to essay writer, most business owners do not consider Medicare and social security contributions to be among employee benefits. However, they are. These are long-term benefits that the employer and employee pay for a couple of years with the understanding that the employee will benefit from them upon retirement. The rates always keep changing. Therefore, it’s important to stay up to date with the latest figures to avoid breaking the law.
2. Worker’s compensation insurance
This is a form of insurance that employers provide to employees who become injured or ill while working. Employees get medical benefits and supplemental income that they don’t usually receive. You can learn more about this benefit by visiting the labor website.
3. Minimum wage and overtime pay
At the moment, the federal minimum wage is $7.25 per hour. Employers are required to pay all employees at the federal minimum wage. Also, the required hourly threshold is at forty hours per week. This means that you are required to pay your employees overtime pay if they work for more than 40 hours per week. It’s best to consult your local and state laws to figure out what you are required to pay.
Employee benefits considered as industry standards
As we said earlier, these benefits are not mandatory. However, they are considered as the standard across an industry. If your business doesn’t offer benefits that your competitors are, it’s highly likely that you lose talent. Here are some of these benefits.
4. Health insurance
As Australian assignment help reports, health insurance is a popular employee benefit program that most employers offer. Medical insurance is made up of three units namely vision insurance, health insurance, and dental insurance. Health insurance includes a couple of things such as a health savings account and health reimbursement account. Some businesses will offer one of these options. It’s important to explain to your employees the difference between the options that you’re offering.
5. Medical and family leave
Organizations should offer family and medical leave to all qualifying employees. This benefit allows employees to go on unpaid leave for twelve workweeks in a year to care for newborn children, a sick relative or emergencies without risking their employment.
To be eligible to receive this benefit, employees must have worked with the employer for at least one full year and 1250 hours in the past one year. Also, they should be in a business with more than 50 employees.
6. Disability insurance
Disability insurance aims at protecting the employee from unforeseen circumstances that can prevent him or her from working for an extended period. Disability insurance can be short-term or long-term. Short-term disability insurance covers injuries that may prevent the employee from working in a short period while long term covers anywhere from three to six months.
Employee benefits offered as perks
These benefits are offered to retain talent. They include:
7. Wellness programs
Employees spend most of their time in the workplace. And this has necessitated more companies to heavily invest in wellness programs. This includes access to nutritionists, therapists, and gym memberships to name a few. Employers invest in wellness programs not only to retain employees but to ensure that they are functioning at their level best.
8. Commuter benefits
In the majority of cities, most employers offer tax-free commuter benefits. This helps in reducing commuting expenses such as tickets and parking costs.
9. Work from home options
The rapid advancement of technology is making it easier for employees to work remotely. Today, most employees prioritize flexibility more than reimbursements. Therefore, employers who will allow their employees to work from home will greatly increase their chances of success in the future.
Tracking employee benefits
The volume of employee benefits can make tracking and managing activities extremely difficult. Using the wrong software can prevent you from offering innovative benefits to your employees.
Thanks to the rapid advancement of technology, you can find the ideal software solution for your organization. This software will enable the HR department to not only track but also come up with innovative programs.
Most of the time, employers think of employee benefits as a requirement and a burden. If you want your business to grow, you should start thinking of employee benefits as a retention tool. When employees know that you care about them, they will care about you. And they’ll stick with you to the end.
Becky Holton is a journalist and a blogger. She is interested in education technologies, essay writers, custom essay, edubirdie review and is always ready to support informative speaking. Follow her on Twitter.