Around 75% of companies struggle to fill available positions and retain existing employees amidst a critical talent shortage, a fallout from the COVID-19 pandemic shutdowns. And the millions of workers switching jobs to work for companies providing better work/life balance enjoy a distinct advantage as employers scramble to lure top talent with inclusive fringe benefits designed to promote wellness and improve job satisfaction.
This article outlines several examples of employee benefits to distinguish your company from the competition in a competitive recruiting environment. Our comprehensive guide on examples of employee benefits outlines both conventional and new employee benefits trends that your company can offer, including the reasons why employees will love them.
Continue reading to see the 22 examples of employee benefits, as well as some background information that will be helpful.
- What are Employee Benefits & Why are they Important?
- 22 Examples of Employee Benefits that are Popular
What are Employee Benefits & Why are they Important?
Employee benefits are non-salary compensation packages comprising non-cash and indirect remunerations or reimbursements paid to employees over their monthly wages. Companies offer employee benefits to attract and keep the best talents, and they are vital resources in ensuring high workplace productivity and employee engagement. Common examples of employee benefits include
- Life insurance.
- Medical insurance.
- Retirement savings.
- Employee discounts.
- Free gym memberships.
- Gym reimbursement programs
- Fitness subsidies
Why are benefits important?
Employees are an organization’s most valuable assets, and employers must encourage a healthy and all-inclusive corporate culture promoting job satisfaction and employee engagement. Employee benefits are critical human resource instruments driving employee productivity, which is crucial in achieving a company’s goals and objectives.
Below are a few reasons outlining the importance of employee benefits.
- Over 60 percent of job candidates choose jobs with better benefits over jobs with higher salaries but fewer benefits.
- Offering excellent benefits packages helps companies attract the best talents.
- Employee benefits boost talent retention and encourage employee loyalty.
- Employees working in companies offering several benefits feel more appreciated and valued.
- Offering employee benefits results in higher employee satisfaction.
22 Examples of Employee Benefits that are Popular
- Health Insurance.
Health insurance is a popular employee benefit type, with over forty-nine percent of Americans receiving medical coverage through their employer. Eighty-eight percent of the respondents in a Harvard Business Review survey indicated that health respondent’s insurance is essential when looking at job offers. Payment for private health insurance is through employer and employee contributions, and the scope of health insurance policies depends on the cost and state regulations. Most health insurance plans generally offer a range of essential and non-essential health benefits like emergency services, doctor’s visits, hospitalization, medical tests, prescription drugs, mental health, and substance abuse treatment, vaccinations and preventive services, ambulatory patient services (outpatient services), maternity and newborn care.
Why employees love health insurance benefits.
- High healthcare costs are a huge issue, with several families struggling to pay medical bills. Health insurance benefits play a huge role in mitigating the cost of excessive medical bills, which is responsible for forty percent of personal bankruptcies in the United States.
- Private health insurance allows employees faster access to medical personnel in private facilities, including access to specialized medical centers.
- Retirement or Pension Benefits.
Employer-sponsored retirement plans are excellent employee benefits that offer companies an edge when hiring talent. Retirement benefits provided by small and large businesses promote talent retention and job productivity, according to a State of the Workplace Financial Benefits Study by Morgan Stanley. Popular retirement benefits employers offer include 401(k) plans which allow employees to deduct a percentage of their monthly paycheck towards a retirement savings account. Your company may contribute to employees’ 401(k) plans to ensure their financial security. Other common examples of employee retirement benefits include
- 457 plans.
- 403(b) plans.
- Pooled Employer Plans.
- SIMPLE IRA plans.
- SEP plans.
- Profit-sharing plans (PSPs).
- Employee stock ownership plans (ESOPs).
Why employees love retirement benefits.
- Retirement benefits provide employees with financial security over their lifetime, including during periods when they may not be able to work due to disability.
- Elective salary deferrals like a 401(k) plan are excluded from the employee’s taxable income (except for designated Roth deferrals).
- Dental Insurance.
Dental insurance also referred to as a dental plan, is employer-sponsored health insurance covering part of an employee’s dental care costs. Employers may provide dental insurance for employees under combined medical and dental coverage or as a separate benefit. Dental insurance covers many dental care procedures, including teeth filling, surgeries, x-rays, root canals, crowns, cleaning, and tooth replacement.
Why employees love dental insurance.
- Employees without dental insurance in the United States lose income when they take time off work to seek dental care.
- Employees love dental insurance because it lowers the risk of developing oral health issues, which can result in severe inflammatory illness like heart disease.
- Flexible Work Hours.
According to Adobe, flexible scheduling is a popular perk among tech employees. Offering employees flexible work hours instead of a fixed work schedule boosts employee empowerment, allowing them to work outside of traditional office hours during their most productive period. Offering flexible working hours builds trust between managers and employees. Employers may include a 4-day work week and remote options as part of their flexible work hours package.
Why employees love flexible work hours benefits.
- Employees love flexible work hours because they have the liberty and flexibility to arrange their job schedules.
- Employees make fewer trips to the office resulting in significant savings on transportation expenses.
- Paid vacations.
Although the Fair Labor Standards Act does not mandate employee-paid vacation for employees. Several employers offer paid vacation benefits allowing employees to take time off work to relax. Over ninety percent of private-sector full-time employees receive some paid vacation days. Some employers provide travel stipends covering certain travel-related expenses or employee discounts for ticket and accommodation costs.
Why employees love paid vacation benefits.
- Paid vacation benefits help employees relax and avoid burnout with minimal financial concerns.
- Taking paid vacations improves an employee’s overall mental and physical well-being.
- Employees on paid vacations experience better work-life balance when spending time with their spouses and children.
- Paid Time Off.
Paid time off (PTO) is a perk allowing employees to personal take time off, sick, or vacation days without losing income. Although there is no legal mandate in the United States for companies to provide paid leave for employees. Some employers offer paid time off for better work-life balance and to build trust, increasing employee engagement and productivity. Companies may implement their paid time off benefits program depending on the length of employment or by the average daily hours an employee has worked.
Why employees love paid time off benefits.
- Paid time off prevents employees from working through sickness, allowing them to get enough recovery time and reducing the possibility of future ailments.
- Offering paid sick days reduces the likelihood of illness spreading among employees.
- Disability Insurance.
Disability benefits are designed to pay a portion of an employee’s wages during periods when they fall ill or suffer serious injuries rendering them unable to work and earn an income from an employer. Few states require companies to provide disability insurance. But several employers do offer employee disability benefits through private insurance or self-insured packages. The two common types of disability benefits include
Why employees love disability insurance.
- Disability insurance guarantees employees financial security during a lengthy sickness or after a career-ending injury.
- Disability benefits promote healthier mental well-being and allow employees to focus on their needs during recovery.
- Paid Parental leave.
Paid parental leave or maternity/paternity leave is a growing benefits trend among small and large businesses in the United States. Around eighteen percent of American businesses offer employee-paid maternity leave, and twelve percent provide paid paternity leave, including parental transition assistance for new moms/dads and adoptive parents.
Why employees love paid parental benefits.
- Paid parental leave benefits ensure employees have enough time to bond with their newborns or newly adopted children without losing their financial status.
- Paid parental leave benefit contributes to better work-life balance and promotes healthy mental health and career development.
- Wellness Programs.
Wellness programs are employee perks that aim to promote healthier lifestyles. A sharp increase in employee burnout, depression, and workplace anxiety since the outbreak of the COVID-19 pandemic has made employers adopt wellness programs as a part of their benefits compensation package. Elements of a typical wellness program include free or subsidized gym memberships, health screenings, nutritional therapy, and individual weight loss programs. Employers can partner with organizations like IncentFit that focuses on delivering corporate health and wellness products that make it easier for employees to get healthy.
Why employees love wellness programs.
- Wellness programs encourage employees to maintain healthy habits like frequent exercise, adopting healthy diets, reducing their alcohol intake, and having a stress-free lifestyle.
- Wellness programs improve employee life satisfaction by helping employees recognize signs of depression and prevent it.
- Wellness programs can be structured as a wellness rewards program, so that employees are incentivized to continue using the program and build on their healthy habits
- Tuition Assistance And Student Loan Payment.
In recent years, employer-sponsored college loan repayments are generating more attention at recruiting fairs and job interviews. A survey of young professionals under 30 years old with college loan repayments shows that most respondents prefer jobs offering tuition repayment benefits over those that don’t. Companies across the United States are taking notice of the trend, with several organizations offering robust student loan repayment programs.
Why employees love student loan payment benefits.
- Employee-sponsored tuition repayment programs allow young adults to achieve financial independence early in their careers, allowing them to focus on investment-driven financial plans.
- Education Stipends.
Education stipends offer learning opportunities for employees’ personal and professional growth. Many companies are implementing learning stipend policies to increase employee retention, engagement, and career fulfillment. Employees may spend their learning stipends on any career development or personal programs. These include a degree or IT certification programs, club memberships, personal coaching classes, online courses, books or industry newsletter subscriptions, seminars, and workshops.
Why employees love education stipend benefits.
- Education stipend benefits improve employees’ career growth prospects and enable productivity.
- Family Building Benefits.
Offering family-building benefits can help employers support employees (and their spouses) trying to start a family. According to a WINFertily report, 2020 saw an exponential increase in employers offering fertility benefits compared to 2019. Fertility treatments covered by the benefits package include
- In-vitro fertilization (IVF).
- Intrauterine Insemination (IUI).
- Egg freezing.
More companies are upgrading their family-building benefits plans to include genetic testing, surrogacy, and adoption to attract and retain talent.
Why employees love family building benefits.
- Family-building benefits plans help employees pay for expensive fertility treatments and provide access to highly skilled specialists who perform the complex procedures required for conception.
- Caregiving benefits.
Adult and childcare employee benefits are life-changing perks for the fifty million Americans who juggle unpaid, full-time caregiving for children or an adult family member with a career. Caregiving situations can persist for several years and are typically associated with extreme mental and financial stress, particularly among working single parents. Employers may offer care subsidies for caregivers and access to online platforms providing support for primary caregivers.
Why employees love caregiving benefits.
- Caregiving benefits plans provide significant mental health assistance for primary caregivers and financial support it offers. Employees can access professional counseling or join support groups providing group therapy sessions, free/ discounted home care for seniors, or childcare services.
- Financial Planning Assistance.
Companies can offer financial planning assistance as a perk. This benefit provides employees access to professional financial consultants who advise on personal budgeting plans, loan repayments, mortgage refinancing, tax advice, investment strategies, and long-term financial planning.
Why employees love financial planning assistance.
- Financial planning assistance benefits give employees the opportunity to seek professional financial services at no or minimal cost.
- Employees get to receive quality financial education on savings and investment strategies for retirement.
- Gender-Affirming Benefits.
Employers looking to support transgender employees can offer gender-affirming benefits as part of an extended healthcare benefits plan or as a separate employee benefits package. Gender-affirming benefits provide coverage for gender reassignment surgery, counseling, hormone therapy, and transitioning support. Offering gender-affirming benefits creates an inclusive workplace environment where all employees feel valued and protected.
Why employees love gender-affirming benefits.
- Gender-affirming benefits empower transgender employees, allowing them to embrace their authentic lives and fostering more acceptance among employees.
- Profit-Sharing.
Ownership compensation plans, a.k.a profit-sharing benefits, have been around for decades, and employers use the benefits to reward loyal and hardworking employees. Under a profit-sharing plan, also called a deferred profit-sharing plan (DPSP), employers share a portion of quarterly/annual pre-tax profits among employees. Companies offer profit-sharing benefits to attract new talent, motivate employees, and increase job satisfaction.
Why employees love profit-sharing benefits.
- Profit-sharing plans increase employees self-esteem making them feel a valuable part of the company. It promotes a feeling of appreciation and contributes to an ownership culture.
- Stock Options.
Employee stock options give workers the right to purchase discounted company shares after a particular time. Startup companies commonly offer stock options to attract and retain talent, and it provides an incentive for employees to remain with the company and be committed to its long-term growth. Employees can exercise their right to purchase options at the agreed period and own a part of the company.
Why employees love stock options.
- Stock options benefits are a significant financial and emotional incentive because it rewards employees’ ownership status at their place of employment, and the capital appreciation provides long-term financial security.
- Accidental Death and Dismemberment Insurance.
Companies offer Accidental Death and Dismemberment Insurance (AD&D) benefits to compensate insured employees (or their families) who die or suffer serious injuries, including paralysis, loss of limbs, eyesight, hearing, or speech in an accident. Although AD&D insurance is a life insurance category, it only covers death and injuries from accidents at work, at home, or during travel. The payouts beneficiaries receive depend on the type of injuries. Your company can extend its AD&D insurance policy to cover employees’ emergency treatment, medical exams, hospital stays, and other accident-related financial liabilities like physiotherapy, hospital copayments, hospital transportation costs, and accommodation expenses.
Why employees love AD&D Insurance Benefits.
- AD&D insurance offers financial relief after an accident with immediate cash payments to beneficiaries after filing a compensation claim.
- Employees don’t have to take a medical exam to get AD&D insurance coverage, meaning they do not have to answer invasive questions about their health and lifestyle habits.
- Plus AD&D insurance provides coverage for employees with pre-existing conditions.
- Life Insurance.
Life insurance is a cost-effective benefits option that employees love. Large and small businesses can offer group life insurance policies as an employee benefit to secure long-term employee commitment, boost morale, and increase productivity. Companies could choose to cover the cost of employees’ life insurance premiums or allow employees to make monthly contributions from their paychecks. Employers have the option of two life insurance policies,
- Term policy which provides insurance coverage for a limited period (usually the duration of employment).
- Whole, also referred to as permanent policy, continues for the employee’s lifetime.
Why employees love life insurance benefits.
- Life insurance benefits offer employees peace of mind and provide financial support to their families after their demise.
- Four-Day Work Week.
Four-day work week is an emerging employee perk. Companies in the early stages of implementing a four-day work week pilot report a sharp increase in employee productivity after cutting the number of working days from five to four without reducing pay. As the trend continues to grow, more employees will be looking out for companies offering a four-day work week.
Why employees love a four-day work week.
- The idea of working for fewer days without a cut in wages is bound to get popular support among employees everywhere. A four-day workweek reduces employee stress and frees more time for personal activities.
- Performance Bonus.
Performance bonuses reward employees’ outstanding work and productivity. By offering performance bonuses, employers motivate high-performing employees and inspire others to reach pre-assigned company goals and objectives.
Why employees love performance bonuses.
- Performance-based bonus rewards hard work and distinguishes highly committed employees who ensure high-quality projects are delivered from those who don’t.
- Corporate Discounts.
Offering corporate discounts on products and services is a cost-effective and subtle method of ensuring employee loyalty and commitment to the company’s goals and values. Employers may issue vouchers with purchasing items from well-known brands or creating a discount scheme to acquire the company’s products. Most exclusive employee discount programs provide great deals on pre-launch products and services and serve as valuable feedback platforms.
Why employees love corporate discounts.
- Employee discount programs provide significant financial savings on essential goods and services. It also provides a feeling of self-worth and pride from knowing their financial well-being is a concern.
Conclusion.
Putting together an excellent benefits package for your company requires that you work with experts who can guide you through the process.
IncentFit is interested in working with you! Schedule a call with our benefits expert, and we will work together to tailor your benefits program to your company’s needs.
