While beneficial in the long run, implementing an employee benefits structure can cause headaches for employers. As a business owner, it is in your best interest to treat talented employees as investments, and offer an attractive employee benefits package, even if you may be unsure of what to include and exclude from your employees’ benefits. Fortunately, beyond the base compensation package, four types of work perks cover all essentials to increase employee loyalty and satisfaction levels. Health insurance, paid time off, retirement benefits, and disability insurance are the main players when it comes to benefits. Here’s all you need to know about these four employee benefits.
1. Disability insurance
Disability benefits provide money when an employee cannot work due to an incident related to illness or accident, for example. Even if it is not directly related to employment, employers can pay disability benefits to employees who are unable to work. To receive these benefits, an employee does not have to be permanently incapacitated.
Still, most plans require the individual to be a regular, full-time employee for at least a year. If not, regular sick pay and short-term disability benefits may no longer be available to the employee. There are two main types of voluntary disability insurance:
- Long-term disability insurance
- Short-term disability insurance
2. Health insurance
With healthcare costs rising, medical coverage is a must-have employment benefit. Unexpected medical expenses can have a significant financial impact on uninsured employees. This usually leads to increased absenteeism and lower employee engagement. Health insurance may pay for doctor’s visits, prescription medications, and hospital stays.
Employee health insurance programs are quite valuable, particularly for people who cannot afford private health insurance.
3. Paid leave
Paid time off is when an employee takes time off from work while still receiving payment. There are several types of paid leave, including:
- Bank holidays
- Vacation
- Bereavement leave
- Sick leave
Time off is essential for promoting physical and mental health while improving an employee’s work-life balance. People who are happier and refreshed are less likely to get sick or take an unexpected absence from work.
4. Retirement Benefits
These are benefits designed to help employees save for retirement. There are two types of pension plans:
- Defined Benefit Plans
- Defined Contribution Plans
Employers often want to offer attractive benefits packages to their employees. However, tax restrictions can make it difficult to provide all forms of benefits to employees. Therefore, it is important to make well-informed decisions when developing your benefits package. Health, life, disability and retirement benefits are what talented employees want most.
Contact Concurrent HRO to get started with an experienced employee health benefits partner.
