The employees of a company or business are its backbone as they determine and regulate the day-to-day activities of that organization. The amount of progress that an organization experiences is often a reflection of the quality of its employees and the standard of life that the employees enjoy.
For an employer or a business owner, keeping employees happy should be a priority, and that is why employee benefits packages exist. Discover what employee benefits are all about, and why they are extremely important for an organization.
Employee benefits are types of compensation that are given to employees as an added advantage apart from their regular salary. Employee benefits might be required by law or offered voluntarily by an employer.
Some common types of employee benefits include health insurance packages, retirement plans, life insurance, and profit sharing. The more exciting a company’s employee benefits are, the better its overall reputation, its chances of maintaining employee loyalty, and the likelihood that employees will have a better work-life balance.
The quality and extent of the employee benefits offered by an employer usually depend on the status of the employee in question. Full-time employees tend to be offered a wider range of benefits than part-time employees because of longer work hours and bigger responsibilities.
In addition, the nature of an employee benefits program can be affected by whether the employer runs a large or small business. It is harder for small businesses to offer an employee benefits package on par with that of large organizations.
The amount of attention paid to how employees are treated by employers is a lot higher today than a few decades ago. Our society has gotten more sensitive to human rights over time and there is a widespread realization that simply paying your employees a basic salary is not quite enough.
So, what are the exact factors that make employee benefits important?
For employers, the value of your employees in terms of their ability in executing their job is a very crucial determiner of how well your company will be run. If your employees are well-qualified for their job posts, your organization will likely witness positive growth.
Offering benefits is a great way to attract talent, as the most skilled individuals will lean toward employers that provide the most value. If you want to ward off interest from competitors when recruiting a potential employee, better benefits are an ideal start.
Apart from enlisting a talented employee into your ranks, offering employee benefits will also encourage existing employees to stay with your organization. Effectively, a solid employee benefits package leads to higher employee retention.
“Health is wealth” is a popular saying, and this translates directly when considering employer-employee relations. Health insurance is a common component of employee benefit packages and its purpose is to decrease the cost of healthcare for employees.
Employers that provide health benefits grant subsidized access to healthcare, cumulating in healthier employees and a healthier workforce in general. The easier it is for an employee to get medical management, they will have fewer sick days, leading to more productive time spent at work.
Employee productivity is defined as the value contributed by an employee within a given time frame. Implementing effective benefit plans is a great step towards improving how productive employees are. The more productive your general employee population is, the more considerable the success of your organization.
Here’s how benefit plans can give rise to more productivity:
The outcome is maintaining a long-serving, competent workforce, and hence, more productivity.
When employers offer employee benefits, their employees will be aware that they are being treated nicely. This awareness can create a positive feeling among employees, making them more loyal to your organization.
High employee morale is also directly tied to job satisfaction and employee productivity, enhancing your organization’s progress at the end of the day.
It is recognized that employee benefits result in better physical and mental health levels for individuals. Employee benefits are so significant that some of them are deemed compulsory by the government.
The main employee benefits categories that are required by law are Social Security, Workers’ Compensation, Medicare, and Unemployment Insurance (on Federal and State levels).
Here are some essential benefits that employers should consider when offering benefits to employees.
Keeping your employees healthy is increasingly important, so, offering health insurance is often regarded as a bare minimum benefit. Health plans cut down on out-of-pocket costs for employees when seeking healthcare, making it one of the more important benefits.
Medical insurance is similar to health insurance, but the main difference is that medical insurance coverage is tailor-made for medical expenses when treating specific illnesses or accidents.
Disability insurance ensures that an employee is constantly paid a part of their salary if they develop a disability that renders them unable to work. Since disability insurance establishes a minimum level of financial pay, it is sometimes called income protection.
Dental insurance is a form of health insurance that specifically provides coverage for costs related to dental care.
Companies can offer to keep paying when an employee takes time off from work for holidays. Paid time off can also be granted to employees that need personal time to be alone or with family.
In cases where an employee is facing a serious medical or family situation, the employer is expected to allow them to go on unpaid leave for up to 12 weeks within a 12-month period.
Medical leave can be limited because it is only compulsory for large businesses with a minimum of 50 full-time employees and most US states don’t require payment during leave.
However, even if you live in a state that does not demand leave payment, you can decide to offer paid medical leave as a bonus for your employees.
The main purpose of a life insurance plan is to provide a defined amount of financial support to an employee’s family in case the employee dies.
Exercising goes hand in hand with a healthy lifestyle and a company that handles gym subscriptions for its employees is setting them on a path to fitness and productivity.
Rest is just as important as work and employees need to be given vacation days, especially during the holidays. Vacation time is perfect for employees to unwind and refresh, and employers might continue paying during vacation time depending on how long an employee has worked with a company.
Having a work schedule that is not rigid can help employees experience an increased work-life balance. An employee is more likely to be satisfied when they can choose work hours with a notable amount of freedom.
A retirement plan is centered around saving a part of an employee’s earnings for when they retire. Under a retirement plan, an employee can set a goal and determine how much saving is necessary to reach that goal.
Retirement benefits have long-term value for an employee and can play a major role in boosting employee satisfaction.
Wellness programs strive to better the well-being of employees by helping employees work on their physical, mental, financial, and social health.
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