As an employer, you want to provide your employees with the most comprehensive benefits package possible as a way to reward your team with much-deserved security, to motivate them in their everyday tasks, and to encourage them to remain with the company for years to come. Unfortunately, a business owner must conform to a budget when allocating employee benefits. After all, no business owner wants to incur expenses that aren’t tax-deductible.
Rewarding your employees doesn’t have to involve draining your monthly budget. Designing a benefits program will require attention to detail and a commitment to your staff’s well-being., however. When choosing which company benefits to offer your employees, you’ll need to consider a few major factors. If you’re interested in more information about the type of health insurance plans offered on the market, click here for more details about the different plan options offered for American workers.
Health insurance
Health insurance is one of the most valuable employment benefits, as it grants employees a sense of comfort knowing that their employer will cover their most critical healthcare needs in the case of a health-related emergency As of recent stats, 60% of all American workers get coverage through employer-sponsored plans while taking on additional coverage through supplementary health insurance plans. Overall, health insurance enables workers to access preventive care and protects an employee from financially-debilitating medical costs.
Group health insurance plans cover employees and their dependents, ensuring that they will not incur financial losses when their children utilize medical services. If you value your employees’ commitment to the job, you won’t want to expose them to devastating medical debt.
Despite the costly nature of health insurance plans, offering health insurance benefits enhances employees’ satisfaction, solidifies their commitment to the job, and reduces the likelihood of frequent absences. With these benefits in mind, investing in the healthcare of your employees is worth the investment.
Dental and vision benefits
Though some working Americans fail to prioritize their dental health, good dental hygiene is essential in maintaining good overall health. For example, poor gum health can negatively impact your heart health. In fact, neglecting to floss can lead to conditions such as heart disease. Because your teeth are constantly exposed to food and bacteria, this increases your employee’s risk of experiencing tooth decay and other oral health problems.
Providing employees with dental health benefits allows them to access routine checkups and address dental hygiene problems early. With access to affordable cleanings, your employees won’t have to take sick time for extensive dental procedures that may demand recovery time. Similarly, if your employee is suffering from tooth-related discomfort, this may translate to lower productivity.
Dental and vision benefits should be of equal importance to the employer, especially when cubicle-bound employees are so susceptible to eye strain due to hours spent in front of a computer. In the wake of the Digital Age, almost every task will require the use of technology.
The constant use of computers and other electronics increases the risk of eye damage. Vision benefits allow employees to schedule regular checkups and permits them to purchase eyeglasses and contact lenses at subsidized rates. Most plans include an annual eye checkup that identifies defects before they develop into chronic vision problems such as glaucoma.
401k plans
401k plans allow employees to devote a portion of their paycheck to an investment package, such as a stock bonus or pension scheme. In response, an employer, then, contributes to the employees’ deferral plan. Such benefits are exempt from taxation, allowing employees to grow their income and establish a retirement fund. Some plans are tax-favored, meaning that employers don’t incur income tax on the funds they funnel into these 401k plans.
Apart from the tax benefits, 401k plans enable employers to attract and retain talented employees. These benefit packages also help nourish your business by channeling some of the wage expenses towards investments in the firm through stock options.
Vacation time
Vacation time is a great way of rewarding employees for their service and commitment to your organization. American labor laws don’t require employers to pay employees while taking vacation days. You can negotiate agreements with your employees through employment contracts or company policies. Whatever approach you choose, make sure that it’s fair and equitable to avoid accusations of discrimination.
Data from the Bureau of Labor Statistics indicates that 75% of all private-sector workers have access to paid vacation, implying that you can use them as an incentive for good performance and company loyalty. Generous vacation policies can also help you stand out from the competition when recruiting top talent.
Not to mention, vacations help employees recharge and return to their role re-energized with fresh ideas and perspectives for company growth. Such insights only increase their productivity and boost camaraderie among your team.
Sick leave
Sick leave is one way of demonstrating empathy towards workers that have fallen ill. Most employers give paid sick leave of up to two weeks to employees who are unable to work due to chronic illness or the occasional flu.
You can also provide expanded medical leave to loyal employees who have been with the organization for more than two years. However, the type of sick leave applicable to your company depends on its classification.
For instance, paid sick leave and family provisions apply to firms with less than 500 employees, while small businesses with less than 50 workers can qualify for certain exemptions. Similarly, full-time employees have a statutory right to 80 hours of paid sick leave. Part-time workers are only eligible for a leave that equates to the average number of hours they work in 14 days.
Life insurance
A life insurance benefit is a policy that can strengthen your relationship with certain employees. These company benefits are intended for employees who are nearing retirement and those employees who care for elderly family members.
If you choose to offer a life insurance policy, you should identify the employee groups that are eligible for these benefits, and select the plan that minimizes costs. You should also note that the plan has to achieve a particular threshold to qualify for federal tax exemption.
Final thoughts
Don’t let dedicated employees slip through your fingers. Acknowledge their hard work by providing generous benefits packages that will contribute to the success of your company in the long-term. In the face of a competitive job market, you can’t afford to lose qualified applicants. Attract top talents in your industry with a competitive benefits package.
