An employee benefits package includes non-wage compensation provided to employees over and above their normal wages or salaries. Some examples of these benefits include paid accommodation or housing, health insurance, life insurance, dental insurance, disability income protection, retirement benefits, childcare, educational training reimbursement, sick leave, vacation (paid and non-paid), social security, revenue sharing; payoff employer student loan, household msid and other specialized benefits. There are benefits that the company is entitled to give under federal law such as minimum wages, overtime wages, FMLA(Family and medical leave act) and workers compensation. Employers do provide additional benefits not required by law, out of concern for the resources working in the organisation.
The aim of employee benefits is to safeguard the employees against unforeseen events, implement a reliable employee recognition model, improve employee morale and confidence, motivate them to perform better and increase the financial security of resources, and hence, improve worker retention and engagement across the organization. It is a vital part of employee recognition and employee rewards management.
Perks are benefits of a more conditional nature. Often, perks are given to employees who are star performers or senior resources. Common perks are usage of company vehicles, hotel accommodation, free snacks, gym access, fun activities during official hours (golf, swimming), stationery, lunch coupons, and when multiple choices available, priority scheduling of such things as work assignments and vacations. They may also be given first go at job promotions when vacancies exist.
Here are a list of the benefits of offering a benefits package to your employees:
- Employers can recruit and retain the best talent in the market by providing increased options and flexibility in employee benefits.
- A good benefits package to employees is seen as an effective method of financial management handling high-end coverage at low costs and stabilising the company’s financial standing.
- Employee benefits have been proven to improve efficiency and performance because employees are more motivated when they are assured of security for themselves and their loved ones.
- Employees experience a sense of security and confidence which leads to increased output and morale by being guaranteed that they and their families are guarded in the event of any accident.
- Employees with personal life and disability insurance can enjoy additional protection including income replacement in the event of serious illness or disability.
- Employees develop a feeling of connect, loyalty and pride in their employer if they are happy with the benefits they get.