Explaining Employee Benefits
Employee benefits can be explained as different non-wage compensations offered to employees other than their normal salaries or wages. Some good examples of these benefits are disability income protection, group insurance (health, life, dental etc.), housing, retirement benefits, tuition, daycare, sick leave, reimbursement, vacation, profit sharing, social security, education funding, and similar specialized benefits.
Purpose of Increasing Employee Benefits
The employee benefits are provided to the employees who show notable performance in their work.
Types of Employee Benefits
Besides, there are various different types of employee benefits which are provided by the company, the most common ones being life insurance, medical, disability, fringe benefits, paid time off, and retirement benefits.
- Medical Insurance
Medical insurance, as an employee benefit, covers the costs of physician as well as the surgeon fees, prescription drugs, and hospital rooms. Besides, dental and optical care might also be offered as a part of an overall benefits package. It might also be offered as individual pieces. Also, coverage can, many a times, include the employee’s family.
- Disability Insurance
Disability insurance replaces whole or a part of income which is lost in case a worker is not capable of doing the job due to illness or injury. The disability insurance can be divided into two main categories namely, short-term disability and long-term disability.
- Retirement benefits
Retirement benefits are funds which are set aside to avail people with a pension or income after the ending term of their career. The common categories fitting in retirement plans include defined benefit plans and defined contribution plans.
- Life Insurance
Life insurance protects the family of the employee in case of his death. These benefits are paid in one single installment to the policy beneficiaries.
- Paid time off
The paid time off is earned by the employees while working. The most common types of this employee benefit include holidays, vacation leave, sick leave.
- Fringe benefits
Different types of non-cash payments are used to attract and hold talented employees. These benefits are referred as fringe benefits and include tuition assistance, child-care benefits, non-production benefits, and flexible medical or child-care spending accounts.