The employee benefits package plays an important part in attracting and retaining the right employees for your business. Whether you’re starting up a business or reviewing your workforce, consider what benefits will offer the best competitive edge. Business owners have many options to choose from when putting together an employee benefits package, but a few perks are considered standard.
Workers rely on their employers or easy and affordable access to insurance policies. Most companies offer insurance for health, life, dental, and vision, as well as short-term and long-term disability. Many companies also make health savings accounts or flexible spending accounts available to the employees.
For health insurance, the most expensive in terms of premiums, companies generally cover about 82% of the costs, though the amount differs depending on the size of the company and its financial assets. Yet, it can be a good investment for companies. Access to healthcare keeps employees healthy and results in fewer days of work missed.
Employees want retirement benefits that grow substantially and are easy to manage. Companies have many choices in the types of plans they can offer, such as traditional pensions, 401(k) and Roth 401(k) plans, and IRAs. Employees typically contribute a percentage of their pay with an employee match.
A SEP-IRA may be the simplest to set up and maintain. SEP stands for Simplified Employee Pension and is a type of IRA that’s suitable for any size business. Employers can set up the SEP for free, and there are no ongoing operating costs. Only employers may contribute to a SEP-IRA.
Workers these days desire to balance their work and family lives, so flexible scheduling options are an attractive benefit. Employees are happier and likely to stick around longer if they can arrange their schedules to care for family and personal needs. They may also enjoy better health and reduced stress.
The option to work remotely for at least part of the week is also becoming popular, and this has advantages for employers as well as employees. Fewer employees in the workplace results in lower overhead costs.
Competitive pay is vital in attracting the best workers, but benefits are equally important. Today, workers will often examine the benefits a company offers before deciding to apply or accept a position. Good benefits will keep employees satisfied and more likely to stay with the company.
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