What's Included within an Employee Benefits Package
Written by: AEIS
What is an Employee Benefits Package?
As the term implies, an employee benefits package is a set of "bonuses" that employees get for working with a company that is outside of their salary or wage. This can include things like insurance, access to retirement plans, and more
Why Do Employee Benefits Matter?
The number one reason why employee benefits matter has to do with how they help businesses attract and retain top talent. Not only do they enhance employee satisfaction, but they go a long way towards increasing productivity as well.
If you can't necessarily outspend your competitors, you might be able to offer better benefits - allowing you to stay competitive in the job market, too.
Choosing the Right Benefits Package Based on Business Size
Smaller businesses may want to just focus on the essentials and offer things like health insurance and retirement plans. Larger businesses can offer things like stock options, or even specialized health plans that employees might not have access to anywhere else.
Types of Employee Benefits
Health & Wellness
Health and wellness benefits tend to include things like not only health insurance and vision insurance, but also assistance with prescription drugs, employee assistance programs, wellness programs, and more. Even retirement-related benefits can be a big part of this category, which includes but are not limited to things like 401(k) plans, pension plans, and employee stock ownership programs.
Work-Life Balance
Maintaining a proper work/life balance is a dream of many people, regardless of the employer they have or even the industry that they're operating in. People want to devote their passion, their creativity, and their energy to their job - such a big part of their lives needs to be fulfilling. It's just that they don't want it to come at the expense of their personal life. That is, after all, the thing they're working so hard to support.
That's why work/life balance benefits are often crucial, especially among a younger generation of people looking to broaden their careers. These can include things like flexible working arrangements, the ability to telecommute, assistance with any child care-related needs they may have, and even eldercare assistance.
Time-Off
Even in a world where a lot of people are operating on a hybrid model, time-off benefits are still a crucial part of any employee benefits package. As an employer, you always want to do whatever you can to prevent your employees from burning out. The happier they are, the more productive they tend to be on average. Time-off isn't about allowing employees to work as little as possible - it's about making sure that they can strategically refresh themselves so that they can come back to work firing on all cylinders.
Employee Benefit Package Options
Group Health Insurance
PPOs, HMOs, and HDHPs are all examples of viable group health insurance offerings. With a PPO (also called a Preferred Provider Organization), employees can go to any doctor or specialist they want without a referral. With a Health Maintenance Organization plan, however, employees need to go through their primary care to get a referral. The main difference among the various types of group health insurance plans has to do with the deductibles and copay that are required, as well as the monthly premiums that are charged to employers and employees.
Vision Insurance
Vision insurance is a (relatively) inexpensive addition to an employee benefits package that can make a big difference in terms of the value that you're providing to your workers. Anyone who has suddenly had to deal with getting glasses, regular contact refills, or sudden vision-related emergencies can tell you how expensive it is - and how appreciated a quality vision insurance plan is, as well.
Dental Insurance
Many people make the mistake of assuming that dental insurance isn't an attractive employee benefit because of how much less expensive dental care is relative to healthcare its "bland" reputation. When you consider the sheer cost of even routine dental procedures like root canals, however, the savings begin to add up fast. This is especially certain if someone is suddenly taking a proactive approach to their oral health, possibly for the first time in their lives.
Disability Insurance
This is a type of insurance coverage that protects employees who are unable to work because they fall ill or get injured. This comes in two variations - short-term and long-term disability. The former pays out for 3-12 months up to 26 weeks. Long-term disability would be considered anything after that point. Note that there are five states including California and New York with state disability insurance that actually require disability insurance from employers. This is also not quite the same thing as worker's compensation insurance as disability insurance policies cover employees for disabilities that occur outside of work.
Life Insurance
This common benefit is often paid for in entirety by the employer but can also be done on a voluntary basis usually provided at no additional charge to the employee. They do, however, have the option to increase the amount of coverage they have for a fee. If nothing else, life insurance gives employees the confidence that only comes with knowing that even in the event that they unfortunately pass away, their loved ones will still be protected from a financial point-of-view.
Time-Off
Paid time-off is one of the best, easiest ways to not only attract top employees, but retain them as well. Note that while sick days are a big part of this, there are other types of days that qualify. Employees can use paid time-off to take a much-needed vacation for themselves, as personal days, or for any other purpose that they like. This is again a viable way tofor maintain the work/life balance that is so precious to them.
Flexible Schedule
In some industries, it doesn't actually matter when work gets done - so long as important tasks are completed. Technology has evolved to the point where it doesn't necessarily make sense to force everyone into the office to follow a rigid "9-to-5" structure. In those situations, businesses can turn this into an asset by offering flexible hours, telecommuting, remote work, and other possibilities to employees.
This is great for employees who may be trying to balance raising a family, for example, or taking care of loved ones. So long as their obligations are being met, they can work on whatever schedule they'd like.
Additional Employee Benefit Options
Just a few of the additional employee benefits options you might want to explore include:
- Professional Development & Educational Assistance. You might offer to pay for certifications, workshops, and more.
- Metal Health & Well-Being Programs. This can include things like stress management workshops or even counseling services.
- Emerging & Unique Benefits. Examples of this might include loan repayment assistance, or even something as seemingly straightforward as pet insurance.
To find out more information about what is included in benefits package offerings, or to get answers to any other questions about employee benefits packages you might have, please don't hesitate to contact AEIS today.
Best Practices for Your Employee Benefits Package
The number one thing you can do when putting together your employee benefits package is talk to your workers to see what their unique needs are. Don't just assume you know what is best for them. Let them tell you directly. Make an effort to understand what their concerns are and what you can do to address them.
Beyond that, it's always important to enlist the help of seasoned professionals like those at AEIS, as opposed to trying to put together an employee benefit package on your own. We can leverage our pre-existing relationships with vendors to your advantage, allowing you to put together the most competitive package you can in the most efficient and cost-effective way.
If you'd like to find out more information about what is included within a high quality employee benefit package, or if you'd just like to discuss your workforce's own unique needs with a team of professionals in a bit more detail, please don't hesitate to contact AEIS today.
Employee Benefits Package FAQs
How to offer benefits as a small business?
Offering benefits as a small business is always easier when you find a partner to help guide you, like the team at AEIS. If you're putting together a package yourself, focus on options like group health plans or even offering basic benefits like paid time off.
How can small businesses afford competitive benefits?
Small businesses can afford competitive benefits by taking advantage of things like tax incentives. You can get tax breaks on health insurance or retirement contributions, for example. You might also choose to pursue non-traditional benefits, like offering flexible work hours or telecommuting, that you don't necessarily have to pay out of pocket for but that employees will still value.
How often should a company update its benefits package?
At a minimum, you need to review what you're offering in terms of employee benefits at least once per year to make sure you're still as competitive as possible. Likewise, if you're offering something that people aren't responding to, swap it out for something else that will make more of an impact.
What benefits are legally required to be offered?
This will vary depending on the state that you're operating in. However, certain federal mandates exist, too. For example, companies with over 50 employees must offer health insurance under the Affordable Care Act (ACA).
