With growing concerns for employment situation across the capitalist world, attention on the 5 common benefits offered by employers to their employees needs be drawn so as to figure out how the labor market should be circled within the circle of the daily burgeoning financial market.
Employers have not over time gone beyond the provision of some 5 benefits commonly reserved for workers and that is why they are now taking our focus in this content, which though may be weakly set at whether the benefits are sufficient or not.
The truth is, whether these are enough for them or not is however the business of the employees who are always at the receiving end. But the major function of this content is to find out what those 5 common benefits offered by employers to their employees.
Economically, energy transmutes into money. This emphasizes the essence of the employees and the need for them to be necessarily taken care of. Well, having identified that there needs be at least 5 benefits to be enjoyed by these regularly financially victimized employees, the outline of the 5 common benefits offered by employers to their employees are loudly sketched below for you to know:
Life Insurance Policy and Medical Coverage
Many employers provide life insurance plans as part of an employee benefits package. Often, these life insurance policies are group-term life insurance, which means the insurer provides the employer with a master contract that extends life insurance coverage to all staff members and is in effect for a certain time period.
Usually, the life insurance term lasts for as long as the employee works for their employer. Other life insurance plans may be available depending on the employer, but group-term plans typically cost less than individual insurance policies.
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. It also covers emergency room visits and many types of surgical procedures.
Skills Development through Training
Rapid technological developments make employees aware of how important skills development is. The University of Phoenix discovered that 52% of American workers believe they are replaceable in their positions, and 68% say that more opportunities to upskill would keep them with their current employer.
Many workers look for employers that will support their continuing education endeavors. Benefits such as tuition funding, student loan assistance, or a budget for professional training and certifications do just that.
Retirement Plans
Saving and investing money for the future can be difficult. Many people would rather participate in an employer-sponsored retirement plan than try to do it on their own.
Retirement benefits allow employees to earn employer contributions or save and invest some of their wages for the future. Opportunities to enroll in these plans and automatic payroll deductions support and simplify the process of preparing employees for retirement.
Read Also: Best Way to Start Retirement Planning
In the US, very few non-government organizations still offer a traditional pension plan. The 401(k) is now the most common employer-sponsored plan. It allows employees to invest a tax-free portion of their wages into the fund(s) of their choice. Employers will typically contribute to the employee’s account as well by matching a certain amount of their contribution.
Paid Vacation
Generally, vacation time accrual is an employee benefit that may be an option instead of PTO. Employees who have vacation allowances accrue a certain number of hours each pay period, similar to paid time off allowances.
One of the primary differences between a PTO plan and paid vacation time is that employees can use PTO for any kind of time off from work, whereas they can only use vacation allowance for vacations. When employers offer vacation allowance, they typically also offer paid sick leave.
Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs)
Another one of the 5 common benefits offered by employers to their employees is the FSA and HSA. Flexible spending accounts (FSAs) are similar to health savings accounts (HSAs) in their allowed use, but each account type comes with pros and cons. For example, FSAs are available with nearly any health insurance plan, however they come with a “use it or lose it” clause. This means that if you claim $1,500 for the calendar year, but you only use $1,300, you lose $200.
HSAs, on the other hand, never expire. They are more like a real savings account in that money accumulates over time and you are allowed to use it forever, even after you switch health plans. The restriction here is that the contributions you make are only tax-free while you’re enrolled in a HDHP.
