In today’s highly competitive hiring market, offering a generous benefits package can go a long way toward attracting and retaining top talent. What is considered a good benefits package?
While this can differ depending on who you ask, the standard in most industries consists of health insurance, dental insurance, flexible spending accounts, retirement savings plans, vacation time, and additional paid time off for events like family medical leave, maternity leave, and sabbaticals.
Flexible Phases Of Coverage For Smaller Companies
Most smaller companies do not have the budget of their larger counterparts. This means that they must be more aware of their spending, especially when it comes to expenses like employee benefits. Having access to flexible coverage options allows these small businesses to deliver great benefits to their employees without breaking the bank.
Small businesses must also approach employee benefits with great focus. The benefits program should be centered on concise goals, be as competitive as possible, be financially realistic, and should fit into the company’s complete compensation picture. By taking the time to find the right plans and coverage, you can build a good benefits package for your team.
Characteristics Of A Good Employee Benefits Package
There are certain employee benefits that are mandated by state and federal law, such as minimum wage, overtime, workers’ compensation, and disability insurance. However, if you want to maintain a competitive edge it is important to extend your benefits outside of these required perks.
By building a comprehensive employee benefits package, you can show your staff that you are invested in their health, wellness, and future. Excellent employee benefits can also differentiate your business from your competitors.
Health Insurance Including Dental & Vision
While most employee benefits packages include standard medical coverage, some employers choose not to include dental and vision. There are a number of reasons why companies should include dental and vision in their health coverage offerings. Dental and vision coverage can directly impact an employee’s attitude and overall quality of life.
From preventive dental checkups to regular eye exams, these services are crucial for good health and wellness. Dental and vision benefits are sought after by employees of all ages as tooth decay, dry mouth, gum disease, and vision changes affect adults of all ages.
Reasonable Paid Time Off (PTO)
More and more employers are choosing to add paid time off (PTO) to their employee benefits package and for good reason. Paid time off can offer protection for both employers and employees. With PTO, workers do not have to make up stories about being sick as they have the right to take PTO at their discretion. Employers can stay protected by establishing guidelines designed to maintain productivity. For example, a company may require employees who request PTO to provide at least two days of notice.
There are many types of PTO benefits to consider adding to your package, such as paid holidays, paid sick days, paid vacation days, funeral leave or bereavement, and paid personal days.
Retirement Packages & Other Types Of Insurance To Consider
Retirement benefits are a must-have for modern companies with 401ks being the most popular plan available. Offering retirement plans is a great way to help your employees plan for their future. These plans can also be highly attractive to job candidates, giving businesses a recruiting advantage. They can also provide companies with significant tax advantages. In addition, if your company has high start-up costs or minimal cash on hand, a retirement plan could help supplement your employee compensation package.
While health, dental, vision, PTO, and retirement benefits are some of the most well-known employee benefits, they are far from the only ones. Another benefit to consider adding to your benefits package is life insurance. Life insurance can provide peace of mind to employees who may be concerned about how their families will make it financially in the event of their death. Other excellent employee benefits include health care flexible spending accounts (FSAs), stock options, and fringe benefits like wellness programs, tuition reimbursement, relocation and housing options, and commuter benefits. While it is not necessary to acquire all of these benefits, your package should be well-rounded.
Reach Out To A Professional PEO Consulting Firm
An employee compensation package should consist of more than just salary. There are many key benefits that are not only desired by modern employees, but expected. From perks like health insurance to paid time off and retirement plans, these types of benefits can be highly attractive to top talent and can help ensure that your existing staff sticks around for the long-haul.
As putting together a good employee benefits package can be challenging, it is a good idea to speak with professionals in the field. For more information about what a good benefits package consists of or for assistance putting together the best package, contact the PEO consultants at BenefitCorp by calling 972.737.7875 or by requesting a quote online.
What are 5 examples of benefits? ›
- Health insurance.
- Paid time off (PTO)
- Retirement plan benefits.
- Flexible work schedule.
- Dental insurance.
- Vision insurance.
- Life insurance.
- Paid family leave.
Healthcare emerged as the leader in ranked importance by employers as the most important type of benefit that an organization can offer its workers followed by retirement and leave benefits, which ranked jointly at number two. Retirement benefits were at 55 percent in 2020/21, back up to 82 percent in 2022.What should I ask for in a benefits package? ›
- Paid time off. Paid time off, or PTO, is a benefit that grants you compensation for personal time off. ...
- Commuter benefits. ...
- Insurance plans. ...
- Flexible hours and work from home. ...
- Professional development opportunities. ...
- Student loan repayment. ...
- Health and wellness benefits. ...
- Parental benefits.
How Much Is Average for PTO? Ten (10) days is the average number of PTO for private sector employees who have completed one year of service, according to the Bureau of Labor Statistics (BLS). This number, rounded to the nearest whole number (it's actually 9.7 days), does not include sick days or paid holidays.What is the most common type of employee benefit? ›
The most common employee benefit that employers offer is medical or health coverage. Typically, employee medical insurance covers costs associated with doctors' appointments, regular checkups and basic medical procedures.What benefits should I offer? ›
Popular employee benefits
Medical, dental and vision insurance. Tax-advantaged health spending accounts (flexible spending accounts, health savings accounts and health reimbursement arrangements) Life insurance.
To qualify for exemption, employees must meet certain tests regarding their job duties and be paid on a salary basis at not less than $684* per week. The regulations contain a special rule for “highly compensated” employees who are paid total annual compensation of $107,432 or more.What are 5 common benefits offered by employers to their employees? ›
- Health Insurance Benefits. This one is a no-brainer. ...
- Life Insurance. ...
- Dental Insurance. ...
- Retirement Accounts. ...
- Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs) ...
- Paid Vacation and Sick Time. ...
- Paid Holidays. ...
- Paid Medical Leave.
Employee benefits are more important than salary, because they provide better experience for employees and increase satisfaction. While salary is important, other forms of compensation, whether they be benefits or unique perks, can often be even more effective to recruit and retain talent.What are the two most important employee benefits? ›
Most Desirable Benefits According to Employees
If you want your benefits package to remain competitive, you'll want to offer health insurance, some disability and life insurance, and probably a retirement plan, such as a 401(k).
How do I know if my benefit package is good? ›
- Look for 401(k)s with matching contributions. ...
- See if the vacation policy is negotiable. ...
- Understand how the bonuses work. ...
- Look for affordable insurance options. ...
- Calculate the monetary value of other perks, too.
Other benefits you can negotiate
Better insurances: health, dental, vision, disability, life, etc. Wellness programs – like fitness clubs, etc. More time off: sick day handling, personal days, paid holidays, vacation (how many, when and how?)
Financial health benefits such as student loan assistance, 401(k) contributions and financial education programs like Momentum onUp are among the most in-demand perks for millennials.How much should I budget for employee benefits? ›
Experts suggest that you should expect to pay a range of 1.25 to 1.4 times each employee's base salary. That extra $10,000 might include things like $120 for life insurance—an average cost for your younger and older workers—$5,760 for family health coverage, $520 for dental insurance, and $200 for long-term disability.Is 2 weeks of PTO a lot? ›
Is two weeks of vacation time normal? Two weeks of vacation time is pretty standard in the US. However, employers are not required to offer paid vacation time. Still, they often include it willingly as part of their benefits package to attract potential employees.Is 15 days of PTO good? ›
Yes, 15 days of PTO is good for most employees.
If a job is advertising 15 days of PTO for new hires, that can definitely be considered a good offer and a significant draw for talented candidates.
Every PTO plan is different, but while traditional leave policies typically grant employees 30 paid days off per year — 10 days of paid vacation, 8 sick days, 2 personal days, plus 10 paid holidays, most PTO policies give employees between 15 and 20 days plus company-observed holidays, according to the Society of Human ...How can you tell if a employee is highly compensated? ›
Highly Compensated Employees – In General
Generally, an employee is an HCE under the ownership test if he or she is a 5% owner at any time during the current plan year (also known as the determination year) or the 12-month period immediately preceding the determination year (also known as the lookback year).
The limit on employee elective deferrals (for traditional and safe harbor plans) is: $22,500 in 2023 ($20,500 in 2022, $19,500 in 2021 and 2020; and $19,000 in 2019), subject to cost-of-living adjustments.What is a reasonable raise in 2022? ›
What is the appropriate salary raise in 2022? Data from The Conference Board suggests that the projections for median salary increases in 2022 are 3%, consistent with the average raise percentage for the last 10 years. This holds true across all employment categories, including: Nonexempt hourly.
Do benefits outweigh salary? ›
According to the Glassdoor survey, 80% of employees prefer additional benefits over a pay increase. Employees are starting to prioritize the benefits they would receive from a company over salary because employee benefits provide better experience and helps increase their job satisfaction.Should I take a lower paying job with better benefits? ›
In most cases, benefits are worth more than the extra pay you might receive, so a lower-paying job that offers great benefits is worth considering. A good benefit package will include medical and dental, matching retirement contributions, and tuition reimbursement, among other perks which is a huge plus.What is the best benefit at a company? ›
But the best employee benefits offer more than government requirements — they support employees' mental, physical, emotional, and financial health. For instance, a great benefits package may include: Paid leave. Affordable health insurance.What do good benefits look like? ›
While this can differ depending on who you ask, the standard in most industries consists of health insurance, dental insurance, flexible spending accounts, retirement savings plans, vacation time, and additional paid time off for events like family medical leave, maternity leave, and sabbaticals.What a typical benefit package for employees is comprised of? ›
Employee benefits packages include non-salary compensation like health care coverage, retirement benefits, and paid time off. Federal law requires employers to offer benefits like COBRA, FMLA, and minimum wage standards; many states mandate further coverage including disability, workers comp, and additional leave.What benefits do you value the most? ›
- Financial well-being. During the past year, many employees had unexpected expenses. ...
- Comprehensive health coverage. ...
- Paid time off. ...
- Office and computer resources. ...
- Wellness programs.
With open enrollment season underway in the U.S., health insurance is top of mind. Not only can family health insurance be a valuable recruiting tool, but it can also increase retention and boost employee satisfaction.What are the most attractive benefits for employees? ›
Better Health, Dental, and Vision Insurance
While non-insurance benefits are gaining in popularity, health, dental, and vision insurance plans remain the most popular employee benefit.
Health insurance — After salary, this staple benefit is of the utmost importance to many job candidates and typically includes medical coverage for employees and their families.What are 3 employee benefits? ›
The most common benefits are medical, disability, and life insurance; retirement benefits; paid time off; and fringe benefits. Benefits can be quite valuable. Medical insurance alone can cost several hundred dollars a month. That's why it's important to consider benefits as part of your total compensation.