Employee Benefits – Explained + Examples
Employee benefits are non-wage compensations provided by employers to their employees in addition to their regular salary or wages. These benefits can come in many forms, such as health insurance, retirement plans, paid time off, disability insurance, and more.
The purpose of employee benefits is to attract and retain talented employees by offering them additional incentives beyond just a salary. These benefits can also help to improve employee morale, increase productivity, and reduce turnover rates.
Employee benefits are usually offered as part of a benefits package, which is a set of perks and advantages that an employer provides to their employees. The exact benefits included in a package may vary depending on the employer and the industry, as well as the size of the company and the job position.
Overall, employee benefits are an important way for employers to provide their employees with additional compensation and support, while also improving employee satisfaction and loyalty.
Some examples of employee benefits:
- Health insurance: Employers may offer a range of health insurance plans to help employees pay for medical expenses, such as doctor visits, hospital stays, and prescription medications.
- Retirement plans: Employers may offer retirement plans, such as 401(k)s or pensions, to help employees save for their retirement.
- Paid time off: Employers may offer paid time off, such as vacation days, sick leave, or personal days, to help employees balance their work and personal lives.
- Disability insurance: Employers may offer disability insurance to help employees in case they are unable to work due to an injury or illness.
- Life insurance: Employers may offer life insurance to help employees provide for their families in case of their death.
- Childcare assistance: Employers may offer childcare assistance to help employees with the cost of childcare for their children.
- Employee discounts: Employers may offer employee discounts on products or services that the company offers.
- Professional development: Employers may offer opportunities for employees to attend conferences or training programs to develop their skills and advance their careers.
- Medication and active life: Employers may offer through 3rd party platforms discounts or full coverage of medical products or physical activities and health centred activities (gym, swimming, sport, entertainment).
Employee benefits platforms:
There are many third-party employee benefits platforms that helps employers manage and deliver employee benefits to their workforce. It is a centralized system that provides employees with access to various benefits and allows them to manage their benefits information in one place. An employee benefits platform typically offers a range of features and functionalities that help employers streamline benefits administration and improve employee engagement. Some of the common features of an employee benefits platform include:
- Enrollment management: The platform allows employees to enroll in or make changes to their benefits plans, as well as view their coverage and benefits details.
- Benefits communication: The platform allows employers to communicate benefits information and updates to their employees through a range of channels, such as email, SMS, or push notifications.
- Reporting and analytics: The platform provides employers with insights and data on their benefits program usage, costs, and employee engagement, which can help them make informed decisions about their benefits strategy.
- Integration with other HR systems: The platform integrates with other HR systems, such as payroll, time and attendance, and performance management, to ensure that benefits information is up-to-date and accurate.
- Mobile access: The platform provides mobile access to benefits information, allowing employees to access their benefits information anytime, anywhere, from their mobile devices.
Some example platforms:
- Gusto: Gusto is an all-in-one HR, payroll, and benefits platform designed for small businesses. It offers a range of benefits, including health insurance, 401(k) retirement plans, and commuter benefits, as well as features such as automatic enrollment, online open enrollment, and benefits administration.
- Zenefits: Zenefits is a cloud-based HR and benefits platform that offers a variety of benefits options, such as medical, dental, and vision insurance, as well as time off tracking and compliance assistance. It also provides employers with a range of tools to manage benefits enrollment, employee communication, and compliance.
- ADP TotalSource: ADP TotalSource is a Professional Employer Organization (PEO) that offers a range of HR and benefits services to small and mid-sized businesses. It provides access to a range of benefits, such as health insurance, retirement plans, and workers’ compensation insurance, as well as features such as HR management, payroll processing, and tax compliance.