Employee benefits are designed to attract and retain employees. Smart people take full advantage of every single one of them. They are usually worth about 30% of your salary.
INSURANCE BENEFITS
Health Insurance
Health insurance options include PPO and HMO plans. PPO plans allow you to see any doctor you want and when you want without prior authorization. You pay higher out of pocket expenses and deductibles for this freedom. Alternatively, you can choose a HMO plan. You select a primary physician, who in turn, manages all of your care. You will need to get authorization to see a specialist but the plan costs less. Don’t forget to review dental and vision coverage.
Family health insurance coverage allow you to cover your family and kids until they’re 26. Family health insurance may also include domestic partner benefits.
Disability Insurance
Employees who are unable to do their job as diagnosed by medical professionals can receive disability pay. Disability insurance covers pregnancy, surgery, or severe illnesses. Injuries incurred at work are covered by workers compensation insurance.
Rules are complex but make sure the employee benefits cover short and long term disability so that you can get paid and maintain your financial stability.
Life Insurance
Your employer may provide small amount of life insurance coverage. You will likely need additional insurance if you have a family. Find out if there’s an option to buy more insurance for additional out of pocket cost.
RETIREMENT PLAN BENEFITS
After insurance plans, retirement benefits, employees identified retirement benefits as second most important benefit. Research what options you have, plan carefully and invest so you can retire in comfort.
Defined Benefit
Defined benefit is also known as a pension plan. Your employer contributes a pre-determined amount based on your salary and years of service. You get a monthly paycheck after you retire. DBs are less common now with only 16% employers offering it.
Defined Contribution
Employees contribute pre-tax dollars with defined contribution plan. The most common DC plans are 401k/ 403b. In this plan, both employee and the employer contribute. The employee contributes to his/her 401k/ 403b and the employer contributes a match.
Your employer may contribute additional money, in addition to the match. My previous employer contributed 3%-11% of the employee’s salary annually. The amount increased with longevity.
You can roll over your retirement savings to another plan if you leave your employer or withdraw from it if you are over 59 ½.
PAID TIME OFF BENEFITS
Paid Time Off (PTO) include vacation, holiday, and Extended Sick Leave (ESL). Take advantage of this benefit by finding out how many hours you accrue each pay period and the total number of hours you earn each year.
You are allowed to cash out your PTO when you leave the institution. You may be able to cash out of ESL as well depending on your length of employment and whether you are quitting or at retirement age.
FRINGE BENEFITS
Fringe benefits include the tuition assistance program. The institution pays for it and after one year of employment, your loan is forgiven.
Other fringe benefits include bonuses for signing onto employment and having a perfect attendance.
PRESTIGE
If you work for a prestigious institution, you can get free perks such as leadership classes. I once benefited from an AONE (American Organization of Nurse Executives) internship. I traveled to 4 states, met and networked with other nurse managers while grooming my leadership skills. It was completely paid by my institution.
EMPLOYEE ASSISTANCE PROGRAM
An employee assistance program is designed to assist employees with personal problems that may interfere with their work. Problems can range from alcohol or substance abuse to workplace violence or anything else the employee needs help with. Our EAP program was staffed by licensed counselors with absolute confidentiality. Over the years, the counselors helped me deal with difficult people and cope with work stress. Subsequently, I was able to teach those skills to the staff. My coach and mentor, Chris, (chrisgombergretirementcoach.com) guided me through an early retirement.
EMPLOYEE WELLNESS PROGRAM
Employee Wellness Programs that is tailored to enhance physical and emotional wellness can improve employee satisfaction. Our Wellness Program organized monthly education events. They provided free box lunches and anyone was allowed to attend and listen to guest speakers on nutrition, exercise, and retirement planning.
Yoga and CrossFit classes were also offered at a discounted rate.
OVER THE TOP BENEFITS
Does having lunches made by a professional chef sound like a dream employee benefits? It’s not a dream but benefits offered by Google.
WISH LIST FOR EMPLOYEE BENEFITS
Here’s what I think would be dream employee benefits. With a little bit of pressure on the employers, the wish list can become realities for all the workers.
More Vacation Time
An average PTO paid by private sector employers are 10 hours while the Europeans are paid 20 hours. If we could take a month off each year, we would probably work longer.
Flexible Hours
While the employee hours should match the industry they serve, the 9-5 may have been set and forgotten. There would be less traffic jam and we would have less stress. Employers should consider flexible hours whenever possible.
Work From Home Option
The coronavirus lockdown demonstrated that remote work is productive and enhances employee’s well being. There’s a huge financial upside which include savings gas, parking, insurance, clothes, and lunch. Employers also gain since they can reduce cost from office space and utility.
FINAL THOUGHTS ON EMPLOYEE BENEFITS
It’s helpful to think of employee benefits as part of your whole compensation package. Learn what they are and take advantage of every single one of them. While the traditional benefits such as insurance, retirement, and vacation pay cannot be undermined, there are additional ways that employers can attract and retain their employees. Increasing vacation pay and time, allowing flexible hours and work from home options would go a long way to super charge recruitment and retention.