Small Business Brief


4 Important Types of Employee Benefits You Should Know About

Let’s face it, people who are looking for a job aren’t looking to just make money. They decide who to work for by looking at employee benefits too. It’s reason enough for 80 percent of people to stick with an employer, thus increasing retention. 

People do check if a business offers perks. You may see more people coming in and out if you don’t provide it and amount to more training costs. 

You can keep a solid number of workers with these four types of benefits. 

Employee Benefits One: Medical Insurance

In the event a worker needs to visit the doctor, most expect the company they work for are willing to help them with costs. Medical insurance is the most common benefit available. Companies that offer this attract workers, especially those who are uninsured. 

The rising costs of hospital trips, including dental and vision, make it hard for workers to take control of their health. Your company is also affected by this as it could harm productivity and attendance if care isn’t addressed. You will save company expenses in the long run by offering it. 

Employee Benefits Two: Retirement Plan 

At some point, workers will leave their position and pass it on to the next generation as they retire. You recognize your employee’s efforts to grow your company by creating a retirement plan once they leave their position. The most basic, but valuable type of retirement benefit is the 401(k) plan

Every time an employee receives their paycheck, a portion of that money is put aside and invested to grow. The employee can choose cash or deferred arrangement. This means they can decide to delay receiving a certain amount of their salary prior to taxes. Other types of retirement plans are Cash Balance Plans and Employee Stock Ownership Plans (ESOPs). 

Employee Benefits Three: Life Insurance 

Most workers do not go to work for their sole benefit. They go to work so they can provide for their family. That desire still exists in the unlikely event they should pass away. 

In the case of accidental death or dismemberment, a sum of money is provided to the family or benefactor. For example, if that worker passes away following a car accident, the benefit is paid out. If the person doesn’t die but loses their limb or vision, the same condition applies.

A valid contract should be made upon hiring regarding benefits for ease of access. You can create this with a healthcare services group employee handbook.  

Employee Benefits Four: Disability Insurance 

Not every worker is lucky enough to be free from health conditions. Regardless, they still must make money to survive. You can help them by supplying short or long-term disability insurance.

Short-term disability is usually reserved for those who are ill or injured temporarily. Maybe they are experiencing pain or are recovering from surgery where they need payments until they are better. 

Long term disability is often for those diagnosed with a permanent injury or illness. They could have a mental disorder or unable to walk. So long as the condition makes it hard for them to complete their duties, they would benefit from this plan.  

Providing Employee Benefits Help Your Company 

Businesses can only thrive with profit and a solid set of workers. If you want quality workers, you should offer them employee benefits. Money alone is not enough to keep a worker. In fact, businesses without it have a higher rate of firing people or seeing workers leave quicker than they could hire. 

You will save time and money giving employee benefits. It is never a bad investment for your company. 

If you found this article helpful, take a look at our other informative blogs for businesses.