Types of Employee Benefits
Types of Employee Benefits
Employee benefits range from those that are very common and expected by employees to those that are unique to a company or very rare. Some benefits, such as life insurance and health insurance, exist in the form of group plans so as to get the lowest possible cost.
Things To Know
- Some benefits are rare or unique to their company; other benefits are very common.
- Some benefits require years of waiting to get.
Here are the most common benefits that are available for the offering:
Health
- Health insurance
- Vision insurance
- Dental insurance
- Retiree health insurance
- Fitness centers
- Healthcare reimbursement accounts
- Flexible spending accounts
- Health savings accounts
- Wellness programs
- Long-term care insurance
Retirement
- Retirement plans (401k, 403b, 457b, IRA, defined-benefit plans, etc.)
Family
- Adoption assistance
- Childcare assistance
- Dependent care reimbursement accounts
Education
- Education assistance programs
- Onsite or online education programs
Personal
- Counseling (personal, financial, etc.)
- Paid leave/vacation/personal time/entertainment time/birthdays
- Holiday pay
- Recognition
- Personal computers
- Employee assistance programs
- Life insurance
Compensation
- Stock options
- Profit sharing
- Direct deposit of paychecks
- Non-performance bonuses
- Performance incentives
Transportation
- Transportation assistance (e.g., bus passes)
- Take-home vehicles
- Travel and accident insurance
Other
- Food, beverages, and snacks
- Telecommuting
- Discounts on products or services, including the company’s
- Legal assistance
- Housing
- Flexible scheduling
Some benefits are provided immediately upon employment, while others require a probation period of weeks, months, or years. Profit sharing and stock options are examples of benefits that often require years of employment before receiving. Some, such as childcare assistance, are useful only to segments of a company’s workforce, while others are useful to all employees.
At some companies, particularly the larger ones, benefits are offered via a cafeteria plan. That is a vernacular term describing an arrangement in which employees choose from a menu of benefits to form a benefit plan of their own.