Employee benefits include many types of non-wage compensation given to employees in addition to their usual wages or salaries. Employers offer insurance to their current employees in the form of a group insurance scheme, which is referred to as an employee benefit insurance plan. It could also be used to attract and retain employees in a firm. These benefits are also called fringe benefits, perquisites, or perks.
Basic health insurance, group term life insurance, prescription drug coverage, and accidental death and dismemberment policies are generally included in an employee benefits insurance plan. Other companies could provide a more comprehensive program that includes dental and vision insurance, short- and long-term disability insurance, and retirement plans.
Importance of employee benefit
Offering benefits to your employees is necessary because that indicates that you care about their general health as well as their future. A successful employee benefits package can help in attracting and maintaining a talented workforce. Benefits can help you establish your company apart from the competition. It can enhance your organization or firm growth by motivating employees to participate in wellness programs. Employee health means lower healthcare expenses for your company. Employees with fewer health risks take less sick leaves and spend more time at work, bringing their best to the organization every day. To boost the economic security of employees and enhance worker retention across the firm is the main goal of the employee benefits. So it is one of the elements of reward management.
Common employee benefits
- Health Insurance
- Disability Insurance
- Transit benefit allowance
- Life insurance plans
- Paid vacations, holidays, or sick leave
- Retirement Plans