Benefits for employees come in a variety of forms and are an important part of a company’s overall compensation package, especially for small and medium-sized businesses that frequently cannot afford to offer higher salaries.
In order to better attract and retain top talent, business owners should incorporate common examples of small business employee benefits into their benefits package.
Examples of employee benefits
If this is your first time offering benefits to employees, it is essential to provide the perks that employees want. While ping pong tables and bean sack seats are fun, they may not be the sort of things your representatives care about most.
The most popular employee benefits are:
- Health insurance
- Paid time off (PTO)
- Retirement plan benefits
- Flexible work schedule
- Dental insurance
- Vision insurance
- Life insurance
- Paid family leave
- Mental health benefits
- Professional development and education benefits
- Disability insurance
Once you know what kind of employee benefits you want to provide, you can decide how to structure them.
In general, employers can structure, contribute, and provide employee benefits in two different ways:
- Benefits geared toward the organization
- Benefits geared toward the end user(Consumer)
Depending on the kind of benefits you want to provide, you can provide all benefits geared toward the organization, all benefits geared toward the end user, or a combination of the two.
Let’s examine each in greater detail.
Benefits with an organizational focus
Benefits with an organizational focus are those that are owned and selected by the employer. Employees simply have the option of opting in or out of a specific or defined benefit that you provide to them. Representatives get no decision in the kind of plan or advantage.
Benefits that are geared toward the organization include:
- A conventional gathering medical coverage plan
- A retirement benefits or retirement reserve funds plan like a 401(k)
- A conventional health program
Consumer Oriented benefits
Consumer Oriented benefits are the sort of advantages that are funded by the employer supported however employees select them. You will provide employees with a predetermined amount that they can spend on their own, allowing them to tailor their benefits to meet their specific requirements. Employees are given the ability to choose their own healthcare options that are best for them and their families as a result of this.
Instances of shopper situated benefits include:
- A health savings account (HSA)
- Employee stipends for fringe benefits like wellness expenses or education
- A medical expense reimbursement plan (MERP)
- Personalized consumer-oriented benefits
In recent years, personalized benefits have become increasingly popular options for providing employees with a wide range of perks. Every worker is unique and has their own desires and requirements. Your employees have the freedom to spend their monthly allowances on the things that are most important to them, as opposed to traditional benefits that are the same for everyone. As a result, they are highly appealing benefits for both current and potential employees.
Personalized health benefits While health insurance is typically provided as an organizational-oriented benefit, HRAs are increasingly giving employees more control over their own healthcare.
You can use pre-tax money to pay your employees’ individual health insurance premiums and over 200 eligible medical expenses through an HRA.
Three of the most well known kinds of HRAs are:
- The qualified small employer health insurance plan (QSEHRA)
- The individual coverage health insurance plan (ICHRA)
- The group coverage health insurance plan (GCHRA), also known as an integrated health insurance plan (HRA) Employee stipends
You need to offer a wide range of benefits in order to attract highly skilled workers and keep current employees. It can be expensive to have a comprehensive benefits package that includes wellness programs and traditional benefits. Fortunately, there is an easier method for providing various employee benefits.
With representative payments, you can give your laborers a month to month stipend to take care of the expenses of costs like remote work, rec center participations, educational cost, and different advantages.
Take, for instance, the decision to provide eligible employees with a $300 monthly allowance for health, wellness, and lifestyle-related expenses. Your employees are free to divide their allowances however they see fit. They might decide to get reimbursed for things like therapy, a spa day, personal gym memberships, or any other costs that are covered by your benefits plan.
While you maintain complete cost control, this gives your employees the ability to spend their monthly allowance on the things that are most important to them.
Some fringe benefits, like tuition reimbursement, are exempt from tax, but most reimbursements with a stipend are subject to taxation. If you want to know how much tax you’ll have to pay based on the benefits you offer, you should talk to a tax professional.
In Conclusion
Although organizational-oriented benefits are more common, many small businesses are finding that personalized, consumer-oriented benefits are more valuable to employees, more adaptable, and more affordable.
You’ll be well on your way to attracting and keeping your best employees if you include the well-known benefits in your employee benefits package.
Plan a call with us today to discuss the most ideal choice for your business.