Nowadays, there are various benefits that every employee should expect to receive from their company. Being paid a decent salary is no longer sufficient if companies want to attract and keep the best employees, and they need to make every effort to ensure that their employees’ benefits are up to standard. This will show employees that they are appreciated and will put them and their families in a financially secure position where they can look after their health and continued prosperity. Whether you are a worker who is trying to decide between two jobs or you run a business and are deciding which benefits are most important to your employees, you should know how all the different benefits work.
The following are the basic employee benefits every company should offer.
1. Medical Insurance
The single most important employee benefit which companies need to offer to their employees is medical insurance. Especially in countries like the US, where healthcare is so very expensive, employees need medical insurance to protect both their health and their financial wellbeing. As evident here, when offering employee benefits, it is crucial that employers pay careful attention to how much of the costs employees themselves will have to pay. With medical insurance, this means choosing a plan where there are very low deductibles. The cost of medical insurance deductibles is a hot political topic in the US, where even people with insurance can find themselves priced out of receiving treatment because their deductibles are so high. Many companies now cover their employees with group healthcare plans as the deductibles tend to be much lower and the company can write off many of the expenses in their taxes.
2. Family Medical Insurance
In addition to their own medical insurance, employees want peace of mind when it comes to the health of their loved ones and so family medical insurance is another important benefit. Under the Affordable Care Act, every medical insurance plan in the US must also cover the dependents of the policyholder, including wives, husbands, and offspring up to twenty-six years old. This means that companies in the US do not need to purchase a separate insurance plan for families but can just find the plans which offer their employees and their dependents the best deal in terms of coverage and deductibles.
After comprehensive medical insurance, the most important benefit to the majority of employees is a great pension plan. The significance of this is only growing as people are living longer and so spend far more years in retirement than previous generations. In the US, the most common type of pension plan is the 401K, in which employee contributions are matched by their company. This is a great savings incentive for employees and can enable their employers to reward their hard work and commitment to the company. Retirement can cause financial uncertainty so a great pension plan is an absolute must.
4. Short/Long Term Disability Insurance
Everyone gets sick once in a while and so all employees need to be provided with both short-and long-term disability insurance to ensure that they are financially okay during periods off work. Short-term insurance protects employees who have to miss a few days or weeks of work due to a nasty virus or minor surgery. Long-term insurance covers employees for longer periods of absence when they are more seriously hurt or sick. The Covid-19 Pandemic has shown just how important disability insurance is with many people sick of being forced to quarantine for long periods of time.
5. Life and Accidental Death Insurance
Life and accidental death insurance is a very important benefit as a full-time employee will often be the primary breadwinner for their family. If something was to happen to that employee, their family could be put into a very difficult situation financially. Comprehensive life and accidental death insurance ensure that the family receives an immediate payout to help with funeral expenses and then monthly payments after that. The size of these payments is based on the terms of the life insurance plan, how much had been paid at the time of death, and the circumstances which led to the death. If an employee dies as the result of an accident at work, their family can expect both a sizable upfront payment and big monthly payments for many years.
Successful businesses rely on their employees’ hard work and dedication so it is only right they are rewarded. In addition to a competitive salary, it is so important that employers provide top-notch benefits. The five benefits explained in this article are the basic employee benefits every company should offer in order to protect and reward their workforce.
If you are a business owner – what benefits are you offering staff apart from their salary? In addition to above, Companies are offering – gym memberships, free fruit and vegetable for preventative health, social events and sporting events, group meals, outings and more.