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Employee Benefits

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What are employee benefits?

Employee benefits are financial support given to full-time employees by employers. Traditionally, they include medical insurance, life insurance, disability insurance, and retirement plans. Sick leave, vacation, and company stocks are other forms of employee benefits. Employee benefits for each company may vary.

Why are employee benefits important?

Employee benefits help increase the economic security of employees and improve employee retention. Certain employee benefits are mandated by the law, while others are offered at the manager and business owner’s discretion. For example, free meals or company vehicles can be offered to employees. Employee benefits can be used to motivate employees and encourage strong performance.

Examples of employee benefits:

  • Health insurance: Team members appreciate their employers subsidizing their health payments. Investing in employee wellness increases employee retention rates as it offers them more financial freedom.

  • Life insurance: Team members with family members relying on their income will appreciate life insurance. This ensures that those they provide for will be taken care of when their time comes.

  • Parental leave: Team members considering starting a family in the future will take into account parental leave benefits from their employer. Parents have a higher retention rate than non-parents due to increased responsibility, which makes it worthwhile to invest in parental leave.

  • Dental insurance: Dentist fees can be expensive, and dental insurance is just as important as health insurance. A cavity left uncared for can grow into a root canal, affecting an individual’s ability to eat normally and their overall health. Team members with dental insurance can rest assured part of their cost is taken care of for their next visit to the dentist.

  • Retirement plans: When you help your team members prepare for the future, it improves their retention rates. Matching their contributions to their retirement fund is a great benefit.

  • Flexible spending accounts: Taxes take a huge cut out of employee paychecks. Flexible spending accounts help team members put in a safety fund in case of emergencies. When employers match contributions, that supports the employee’s financial security and improves retention.

  • Profit-sharing: When employees become owners of a company, they become more invested in company outcomes. This helps improve performance and employee engagement.

  • Paid time off: Work-life balance is an important benefit to many employees. Paid vacation is standard for full-time employees and it shows respect for employee wellness. The same applied for paid medical leave, paid holidays, and sick days.

  • Flexible schedules: A common pain point for employees is a lack of work-life balance. Flexible schedules allow parents to pick up their kids after school. They allow caregivers to take care of family members with illness. This is an important benefit for team members with extra responsibilities to have flexible schedules.

  • Education assistance: Opportunities for growth are a huge aspect of employee engagement. It helps to provide education assistance in order to support employee learning. Team members can also add more value to the team when they improve their skills.
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