As a business owner, you are responsible for your employees’ well-being. So it is important to know what types of employee benefits are available for them. Here are the 4 major types of employee benefits, and how each one can benefit your business.
1. Health insurance is one of the most important employee benefits
Health insurance is one of the most important employee benefits you can offer to your employees. This is especially true if you have a small business and you’re not able to offer a retirement plan. Even if you’re small, you should offer health insurance because it’s the right thing to do. By offering health insurance, you are not just paying for the claim, but you’re also providing other benefits to your employees, such as medical and prescription coverage.
Employee benefits not only cover your employees’ health coverage, but they also could affect your own bottom line. Some benefits may cost you nothing, but others could cost you a lot of money.
If you don’t want employees to be wary of your health insurance plan, set it up so they only receive the benefits they need. This could mean your employees only receive preventive care, or they receive no choice but to pay for a certain visit. You can set up this type of benefit in your health insurance plan or in a separate supplemental health insurance policy.
If you have a large business and you don’t have the resources to offer supplemental health insurance, make sure you provide health insurance for everyone who needs it.
The workplace isn’t just a place to work. If you want your employees to feel appreciated and respected at work, then it’s important to make sure your company is providing them with benefits. Employees depend on you to help them manage their time and work-life balance.
2. Life insurance is a form of employee benefits that offers financial protection
It’s a form of employee benefit that offers financial protection in the event of an employee’s death. It can be attached to a 401k plan and can be used to help your family pay off any debt, pay for funeral expenses, and/or replace your income if you’re the primary breadwinner. If you don’t have enough money to meet your personal needs in the event of a hypothetical death, your family can draw from your life insurance policy.
3. Disability insurance covers your employees’ income when they are unable to work due to disability
Disability insurance is a way to protect your employees’ income if they are unable to work due to a long-term disability. If a worker is unable to perform their job due to disability, they may be unable to make money. Disability insurance will help provide a portion of their income to replace what they would have made if they had been able to perform their job.
4. Retirement plans are an important part of employee benefits, and can even save you money!
People are living longer than ever and health care costs are skyrocketing. These two facts combined mean that the days of leaving your employer when you turn 65 and retiring on a pension are long gone. Nowadays, it’s more important than ever to have a retirement plan in place.
Even if your business is small, you can contribute to a 401(k) or other retirement savings plan at work. An employee benefit often offered to all employers who provide health insurance is a defined benefit plan. This means that an employee’s salary and benefits package are set long ago in the collective bargaining agreement. For a small business owner, that’s a big advantage.
While not as ubiquitous as defined benefit plans, a company’s 401(k) plan can have some of the same advantages. While it’s important that employees understand their contribution limits and how the plan works, a 401(k) is still a great benefit to offer to your employees. An employer who offers a 401(k) plan is setting the bar high for future employees as they show companies they care about them.
In this article we have outlined 4 types of employee benefits. What are they again?
- Health Insurance
- Life Insurance
- Disability Insurance
- Retirement Plan Insurance
We have discussed each in short, but there is so much more information to each of these. There is also more than just these 4 types that we have outlined. Want to learn more? Contact us today to schedule a meeting.