When you get a full-time job offer, only when you’re negotiating for a salary will you get an idea of a company’s benefits?
Typically, benefits come as additional compensation alongside your salary, and what every organization offers its employees varies. Here’s where understanding four major types of employee benefits can help you make an informed decision when you pick an employer.
In the war on acquiring and retaining talent, the more generous the offered benefits, the better the chances of the scale tipping in your favor. While employees are on the lookout for a compensation package, that’s good, employee benefits packages play an equally important role as the money.
Certainly, you want talented employees. Before you begin questioning what benefits you can offer, we’ll talk you through what are the four major types of employee benefits and what falls under each category. This way, you can pick and choose what works best for your workforce.
What Are Employee Benefits?
Employee benefits are any form of non-wage compensation that employees receive in addition to their salary.
These types of employee benefits can differ significantly from organization to organization and industry to industry, based on the company’s capabilities and what the employees desire.
A good employee benefits package addresses an employee’s mental and physical health, work-life balance, and personal goals.
Several employers place a premium on providing quality benefits because they attract and retain top talent as well as increase overall employee satisfaction.
Want to learn more about employee health benefits? Here’s a Modern Employer's Guide on The Importance of Employee Benefits.
What Are The Four Major Types Of Employee Benefits?
Now you know what benefits but, what are the 4 major types of employee benefits? Without too much talk, let’s dive right into the major types of employee benefits.
Employee benefits fall into four primary categories, namely:
- Financial security
1. Benefits at work
When at work, the following types of employee benefits help support employees both personally and professionally.
Paid training and development
Whether it’s training for a new employee or someone in the mid-of their career who’s looking to upgrade or learning to upgrade through courses, classes, etc, employees are always looking to grow and learn. Especially when they know their pay won’t be affected, they thoroughly indulge in the experience.
There are certain things employees need to perform their jobs to the fullest in the best possible way. These may include, but are not limited to: Office supplies like pen and paper, Fan or AC, Ergonomic seating chair, Desk, and Computer and other IT accessories
Employee activities and clubs
From free or subsidized gym memberships to celebrating special occasions like birthdays and anniversaries or wellness activities like yoga and meditation, this category has countless options. Such activities help promote a culture of wellness and positivity within the workplace.
Speaking of activities, check out how you can boost engagement in your workplace with these 10 fun Friday games and activities.
Falling sick is inevitable and so is needing a break from work to mentally and physically reset. And so employers offer the following types of leaves:
- Paid time off - Also known as annual leaves, this is a set number of leaves an employee can avail during the year yet be paid. The more days you offer, the more attractive the job is to employees.
- Sick leave - A rule as per law, this allows you to recover from illnesses and gives your health the attention it needs without having to worry about coming to work.
- Other leaves - Every company based on their workforce can choose from a variety of other leaves like maternity and paternity leave, family leaves, bereavement leave, casual leave, etc.
2. Benefits for Health
Healthy employees are happy employees. When looking for a job, applicants typically search for an employer that offers a comprehensive group health insurance plan and other health benefits attached to the company plan. Besides, being fit, healthy employees also bring down absenteeism.
In other words, this is a group health insurance plan. It covers things like doctor consultations, employee health insurance, regular check-ups, etc.
Sometimes employers offer dental coverage along with their regular policy, but sometimes it’s not present. Typically, a dental plan consists of routine examinations, dental procedures, cleaning, etc.
Mental health cover
In recent days, mental health has gained a lot of importance. Due to the negative impact of prolonged working hours, pressure, and stress, nowadays most companies offer cover for mental health. This can include counseling sessions, phone consults, online consults, etc.
Taking care of your health can help you stay fitter for longer. Along with group health plans, preventive care in the form of health screenings helps your workforce assess the state of their health and nip any health risks or potential diseases in the bud before it’s too late.
3. Benefits for Financial Benefits
Yes, job security is one thing. But employees are also interested in money to fund their lifestyle when they retire, or to support them during bad times.
Retirement plans or pension plans
Whether a college graduate or a senior employee, no matter your age, it’s essential to plan for your future. Typically, employees look to their employers for assistance with retirement.
With a retirement plan, not only do you reduce taxable income, but also set aside some money that accrues interest that you can use for your retirement. Retirement benefits help employees feel more secure about their future after retirement.
This life insurance cover acts as a morale booster for the employee when he knows that the employer is taking an insurable interest in his life.
The employee gets the benefit of the cover without paying for it. The death claim will be paid to the nominee appointed by the employee. This will give them peace of mind, knowing that their family will be taken care of, even in their absence.
Employee assistance program (EAP)
A program designed to assist employees confidentially with any work-related or personal problems that may impact their job performance, health, and mental and emotional wellbeing.
Whether long-term disability insurance or short-term disability insurance, this benefit guarantees salary for employees if they get injured and cannot fulfill their tasks to the fullest.
4. Lifestyle Benefits
More so after Covid, this category is becoming increasingly important for employees as work conditions change. It deals with helping employees maintain a work-life balance.
Many roles require employees to travel to meet business objectives. For such employees, covering the costs of travel and spending really helps.
Active employees are more productive, attentive, and focus to get their job done. By offering your employees such benefits, they’ll not only save money but be healthier and happier as well!
With the growing importance of work-life balance, it’s no surprise that benefits in this area are growing in popularity. Whether it’s flexitime, legal services, grocery delivery, childcare, etc. it's all part of the deal!
Let Loop Help Build Your Health Benefits
No two companies are the same. Everyone's needs, budgets, goals, etc. differ. That being said, the above-mentioned categories bring together different benefits employers can offer their employees.
The first step is to determine what benefits you need. The next step is to look for an employee health benefits partner like Loop. Whether it’s doctor consults on the go, booking lab tests, securing your employees with group health insurance, ensuring your workforce is in the pink of their health with preventive care, or the interactive wellness sessions, we’ve got a little something for businesses of all sizes!
That’s not all. For HRs, we’ve got the tools and resources to take a weight off your shoulders and do all the heavy lifting for you. We take over processes like claims, enrolment, adding and deleting employees, etc. with minimal intervention from your end.
Dear HRs, it’s time to get on board the Loop bandwagon and put your health benefits on autopilot to help you drive your business forward!