Since your employees are the lifeblood of your company, it’s important to ensure their happiness by offering employee benefits. Benefits are perks offered to an employee in addition to their salary. Whether you offer free lunch, good coffee, or medical insurance, it’s always wise to provide something extra as it leads to more productive employees and helps you to retain staff.
There are certain benefits that employers are required by federal or state law to provide; this includes Disability, Family and Medical Leave Act, Minimum Wage, and Unemployment Benefits. In addition to these benefits, some companies offer other benefits that aren’t required by law. Here are some of the most popular options:
Medical benefits are one of the most important benefits for job candidates. Depending on the plan, they generally cover the costs of doctors’ fees, hospital rooms, and prescription drugs. Employers can either pay all or part of the premium for employee health insurance. The most common way companies offer health insurance is through Group Health Insurance. Research done by MetLife proved that 60 percent of employers found that offering health insurance has led to higher productivity levels in staff.
Retirement Savings Plans
Retirement benefits are funds set aside to provide employees with an income after retirement. This gives them something to look forward to when they end their careers and allows them to live comfortably. Employers could either offer a 401k plan, or a defined benefit plan like a pension plan. Retirement savings plans will encourage employees to stay with your company as well as attract top talent.
Life insurance will cover an employee’s family if they die. If you’re thinking about including life insurance in your employee benefits package, be sure to consider who will be covered and the type and amount of coverage you’ll be offering. Most companies offer group-term life insurance, but other types of Group accidental death and dismemberment (AD&D) can be offered too.
Dental and Optical Care
Sometimes dental and optical care are included in a health insurance plan, but many times it’s offered as a separate package. Depending on the plan, employees can have dental checkups and cleanings once or twice a year. They can also have their vision checked annually or every two years and receive discounts on prescription eyewear or contact lenses. Employees with these benefits are way more likely to see the dentist and optometrist, which means they’ll have their health in order and be more productive at work.
The difference between perks and benefits
Perks are usually fun extras that could sway an employee to value one employer over another. This could include workplace wellness programs, flexibility (like the ability to work from home), and free lunch or snacks.
Providing any of these employee benefits will no doubt help your company to recruit and retain good people. Are you thinking of setting up an employee benefits program? FBC is Arizona’s oldest and largest locally owned Insurance and benefits consulting firm with extensive knowledge and experience in employee benefits and business insurance. If you want to know more about what our company has to offer, download our Solutions and Services Guide or request a meeting with us.