Employer pay an average of 30-40% of their employee’s salary in benefits. Your benefits, like retirement income, compensation, and benefits, are the result of a multitude of factors. Generally, you will receive better benefits and broader coverage under an employer-sponsored benefits plan than under individual plans on the public market.
First, the costs are more easily paid by the employer. Most Americans have little savings in the bank, if they have savings at all. Without employer contributions, these benefits payments would be too high for the average employee.
Second, the partial cost of benefits are deducted from employee’s paychecks. This passive withdrawal of monies required to pay for an employee’s health care and other benefits is more advantageous. It becomes easier for employees to budget using their final paychecks.
Third, employees can receive greater benefits, and broader coverage, with employer-sponsored benefits, rather than when paying for it themselves.
Upon retirement, employees who pay into a pension plan will receive a lump sum of money. This money is sponsored by their employer. The amount of money is determined by many factors, like an employee’s wages, their tenure, and the structure of the pension payment plan.
Upon retirement, just like with a pension plan, employees will receive money from their employer. However, the amount of money is not usually known beforehand since the money the employee and employer invest are distributed into stocks and bonds and other financial assets.
With life insurance, employees pay premiums for the contracted term of their life insurance plan. In the event of death, the family of the employee will receive a set sum of money. Life insurance mitigates the financial loss that an employee’s loss would have on his or her family.
Employers have a few options when it comes to providing child care to employees. They can run a daycare in a section of their office, provide full or partial reimbursement for employees who enrol their children in child care, or provide child care facilities off-site.
Sick leave can take many forms, from financial assistance for employees who are sick, to the ability to work from home if they are not well enough to enter the workplace.
Profit sharing is a great benefit to offer employees. One notable organization that provides employees with profit sharing opportunities is Costco.
Disability insurance is a must-have for employers with potentially dangerous workplaces. Employees with disability insurance will be able to manage their disability with their work. Disability insurance can cover both the short-term and long-term, which is why two different types are offered.
Paid time off is a perk that can that improve employee productivity and morale, especially if it is reserved for more-senior employees. Paid holidays, like paid time off, can be a great way to motivate employees.
Health care, like dental plans, vision plans, or medical plans, provide employees with the ability to subsidize at least part of their health care expenses. Health employees are happy employees.
Cafeteria plans are a form of plan whereby employees can pick and choose the benefits they want to receive, much like how you can choose your food in a cafeteria. Providing employees with options allows them to only use the benefits they need, saving both them and you money.
If an employee injures him or herself within the course of his or her responsibilities on the job site or in the workplace, he or she can qualify for worker’s compensation. Some forms of worker’s compensation include: paid time off and wage replacement, as well as medical benefits to treat workplace-related injuries.
Group term insurance allows employees to pay for life insurance that provides them coverage over a fixed term. Temp workers, contracted employees, and short-term employees can all benefit from group term insurance.
Determine which benefits you want. Research whether your employer offers such benefits. Inquire if your workplace provides cafeteria plans so you can pick and choose the benefits you want. For more information, as well as to get the best rates regarding employer-sponsored insurance, contact an independent insurance agency like Taylor Benefits Insurance today.
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