When employees feel their benefits needs are satisfied, they’re more productive. And this can only be good for a business. Employee benefits are usually optional, non-wage compensation provided to employees in addition to their normal wages or salaries. This is to ensure employees are treated fine, and are happy. They may include group insurance (health, dental, vision, life etc.), disability income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), funding of education, as well as flexible and alternative work arrangements. It makes for better business management.
Advantages of Employee Benefits
There are advantages in offering employee benefits to the both parties involved (employer and employee).
Advantages for employers:
- It helps employers recruit and retain qualified employees
- It is seen as managing high-risk coverage at low costs and easing the company’s financial burden.
- Employee benefits have been proven to improve productivity because employees are more effective when the security of their families and themselves are assured.
Advantages for employees:
- Peace of mind which leads to increased productivity and satisfaction by being assured that they are their families are protected in the case of any mishap.
- Employees with personal life and disability insurance can enjoy additional protection including income replacement in the event of serious illness or disability.
- Employees can feel a sense of pride in their employer if they are satisfied with the coverage they receive.
Types of Employee Benefits
Some benefits received by employees include;
Health benefit is at the foundation of any employee benefit program. A good health benefit program could be the key to recruiting or retaining top performing employees. It is very necessary you manage your business through providing this for your employees.
Life and accidental death benefit
As an employer, you can design your plans with a provision to protect the employee and/or their family in the event of Accidental Death or Dismemberment (AD&D). This could be a source of strength to employees in the event of a loss.
This is an income-replacement provision. Employees are asked to pay the total cost of the premiums in order to receive a tax-free payment should they be unable to work. Long-term disability coverage is applied for when an employee is unable to complete a certain percentage of the essential duties of their role due to illness on an ongoing basis.
Employee assistance benefit
Employee assistance program, is a confidential, short term, counseling service for employees with personal problems that affect their work performance. Providing employees with confidential qualified counseling and support can reduce the stress and conflict felt by them, which can in-turn reduce undesirable employee traits.
You can also come up with benefits to provide your employees with an income when they are no longer earning a regular income from working for you. The form of payment to these individuals should be a guaranteed payment. Retirement plans setup in a way requiring both the employer and employee to contribute money into a fund while employed so that they will receive benefits upon retirement.