What are employee benefits? What benefits and perks can you expect to receive when you’re hired by a company? An employee benefits package includes all the non-wage benefits, like insurance and paid time off, provided by an employer. There are some types of employee benefits that are mandated by law, including minimum wage, overtime, leave under the Family Medical Leave Act, unemployment, and workers compensation and disability.
There are other types of employee benefits that companies are not required to offer, but choose to provide to their employees. There are some benefits and perks you may be able to negotiate as part of your compensation package when you’ve been offered a new job.
Employee benefits are non-salary compensation that can vary from company to company. Benefits are indirect and non-cash payments within a compensation package. They are provided by organizations in addition to salary to create a competitive package for the potential employee.
Types of Employer-Provided Benefits and Perks
In addition to benefits required by law, other benefits are provided by companies because they feel socially responsible to their employees and opt to offer them more than is required by law.
Depending on the company, these benefits may include health insurance (required to be offered by larger companies), dental insurance, vision care, life insurance, paid vacation leave, personal leave, sick leave, child care, fitness, a retirement plan, and other optional benefits offered to employees and their families.
Almost half the (medium and large) employers surveyed offered either a defined benefit or a defined contribution pension plan. About 75% offered health insurance, but almost all required some employee contribution towards the cost. It’s not hard to look at the averages and see how your employer or your job offer measures up.
In addition, there is an increasing use of bonuses, perks, and incentives by employers to recruit and retain employees. Look at the companies rated the best places to work and you’ll discover many offer health club memberships, flexible schedules, daycare, tuition reimbursement, and even on-site dry cleaning.
Workers’ Compensation Insurance covers the expenses that come with an employee’s work-related illness or injury. This may include immediate costs like an ambulance ride to the ER and long-term costs like physical therapy or lost wages. There’s even a portion that covers your legal fees if an employee decides to sue.
State laws require most employers to carry Workers’ Comp Insurance in case employees are hurt on the job. Not sure whether you need Workman’s Comp? Check out this guide to Workers’ Compensation laws by state.
A business should take every practical measure to prevent worksite injuries and illnesses. But sometimes accidents happen anyway. Say a new hire slips on a puddle and breaks her arm or a mistaken measurement on your construction site leads to a severed finger.