Employees do not only work hard because they want to earn money. The employee benefits their company provides them are also important. Since many employees want a job that suits their lifestyle, salary is not the only consideration to hire qualified people.
If you want to hire the ideal candidates, you need to consider what you can offer. Continue reading to know what benefits you can give to your employees.
Here are the top employee benefits that are commonly offered by companies:
Medical insurance is part of the 4 primary benefits most companies offer to employees. This includes visits to the hospitals or clinics, medical procedures, and prescriptions. Companies shoulder a part of this benefit.
Life insurance is another staple benefit companies offer. Most companies offer life insurance depending on the salary of the employee. There is also no charge on the employee.
Nevertheless, suppose this is too big for your company. In that case, you can also offer this benefit by paying a part of the policy and requiring the employee to pay the rest if they opt to avail of this.
Dental insurance is another common employee benefit but not as common as medical insurance. The advantage of dental insurance is that it is more affordable for business owners and their employees.
It is usually an 80/20 split between the employer and employees. However, this can be adjusted so that it is better suited for your business.
401(k)s and 403(b)s (Registered Retirement Savings Plan) are the most known types of retirement accounts employers offer. The program you can offer is based on if your business is for-profit or not-for-profit. There are different and many options when managing retirement accounts. Some companies opt to have a matching program to subsidize the retirement accounts of their employees. This provides incentives to those reluctant to save. Normally, employers match half of the employees’ contributions to the initial 6% of their contribution.
Flexible Spending Accounts or Health Savings Accounts
Flexible spending accounts or FSAs are almost the same as health savings accounts or HSAs. However, these accounts have their advantages and disadvantages. For instance, if someone has a health insurance plan, FSAs are available. Nevertheless, they can use this or lose it. If they claim $1,500 within the calendar year, they can only use $1,300, so they lose $200.
On the other hand, HSAs do not expire. You can think of them as a savings account. You can collect money over time, and you can use it anytime you want, even if you want to change your health plan provider. However, you are restricted in not paying tax for your contributions when you are enrolled in an HDHP.
Nowadays, it is uncommon for companies not to offer some paid vacation and sick time to their employees as part of their benefits. For full-time employees, they are typically offered 2 weeks or 10 days off. Some companies increase the number of days when an employee has stayed for a long time. For instance, they give an employee an additional 5 days of leave if they have been in the company for 5 years.
Some companies opt to categorize paid-time-off into personal, vacation, and sickness. In contrast, others choose to have it as 1 group. There are advantages and disadvantages when you consider this benefit. Therefore, you should think carefully when you decide on this benefit.
Various companies have different paid holidays. Normally, teachers and government workers have many paid holidays. However, it is different for businesses because they can work through these holidays. Similar to the other benefits mentioned, you need to consider your options and decide which is best for your business and employees.
There are regulations wherein businesses are required to provide medical leave depending on the number of employees they have. Medical leave covers maternity leave, leave to take care of sick family members, or recover from a medical procedure.
Even though companies do not need to pay their employees for this leave, many compensate for these situations. For maternity leave, doctors suggest that women can have at least 6 weeks from when they give birth. Therefore, many companies follow this period.
Flexible Work Schedule
Providing a flexible work schedule is a cost-effective benefit. That is because you do not need to spend money when you allow your employees to adjust their work schedules to make it more convenient for them. Moreover, when employees are happy, they work harder. Your employees can be more productive if you allow them to work for 10 hours each day for 4 days a week.
Many big companies such as Starbucks and Home Depot provide tuition assistance to employees who want to earn a degree. There are some benefits in providing this when you look at the tax viewpoint. Nevertheless, when employees are provided with this benefit, they feel that the company wants to invest in them. As a result, they would want to invest in the company.
Many business owners are concerned about giving this benefit because they worry that employees will leave them once they graduate. To prevent employees from leaving after they complete their degree, some companies require these employees to be part of the company for a particular time after they finish their studies to reap their educational benefits.
Finally, you understand 10 of the most common benefits employers offer. You should stop having the idea that these benefits are mandatory. Rather, it is best to view them as a tool for better recruiting and retaining people. You create an ideal working environment for your employees if they feel that their employer cares about them.
Are you thinking of getting insurance or expanding the benefits you can offer to your employees? If yes, you can contact Insurance Direct Canada for more information and advice about insurance for your company and employees.