Do you know that in the US, 1 out of every 5 people die before reaching state pension age and about 30,000 people leave work each year as a result of illnesses or injuries sustained? These statistics alone show why it is important for employees not to only insist on getting jobs with higher wages but one with employee benefits.
With employee benefits, employers experience peace of mind and a sense of pride while working with their employers because they are assured that their families are protected in the event of any accidents or mishap. This invariably leads to increased productivity.
The truth is that this is a win- win situation also for employers who offer employee benefits to their employees. This is because offering this benefits exhibits that the company cares about the livelihood, long term security and general well-being of their employees and families and for this reason, the company is bound to not only attract but retain top talents even during tough times and of course let’s not forget the improved productivity which is good for the company.
Some common employee benefits are:
1. Pension plan: This benefit provides for old age. The employer and the employee each contributes some amount of money into a pension account each year such that when the employee retires, the pension value is dependent on what has been put in. this total amount can now be used to procure an annual income for the retiree.
2. Health care plan: This benefit covers all health related issues pertaining to illness and injury. These include; Sick pay, Income protection, Private Medical Insurance, Dental Insurance and Optician costs, Critical Illness Insurance and Health Screening.
3. Life insurance plan: Popularly called Death in Service, this benefit covers the employee in the event of death such that his dependents are compensated or supported.
4. Other money- savings benefits /schemes: these are benefits given to employees that will enable them save their money on purchases and avoid interest payments. These include Car Allowance, interest free loans, Share schemes and Childcare vouchers.
As an employer therefore, where to begin when considering an employee benefit package is a very important question that needs to be answered while putting into consideration the various needs of the different age group of its workforce.
Results from a recent survey where participants were asked to rank benefits by its importance showed that healthcare plan at 32% and paid time off/vacation time at 25% are even more important than even a pay raise to these employees. It is of no surprise as this two most important employee benefits help create a balance between work and life.
That said, the importance of a retirement plan and other perks or rewards that ensure employees feel valued are critical elements when working out a competitive benefit package.