“Employee benefits” is a broad descriptor for the insurance and other benefits that employers offer as part of a non-monetary compensation package to induce individuals to join the ranks of the employer’s workforce and to retain employees, once hired.
Often these employee benefits include some, but not necessarily all, of the following:
- Medical insurance coverage – with and/or without a prescription drug benefit
- Dental insurance coverage
- Vision insurance coverage
- Life and/or AD&D insurance coverage
- Mental health coverage/Employee Assistance Program (EAP)
- Retirement planning options – IRA, 401(k), 403(b), 457, pension
- Paid time off (which can be split into multiple categories such as vacation time, sick time, etc.)
- Extended leave and/or family leave
- Disability benefits
- Workers’ Compensation
- Company equipment
Employers may also offer one or more of the following at their discretion:
- Paid training and development
- College or technical education grants and scholarships/education cost reimbursement
- Travel and spending expenses (for job-related costs)
- Company transportation
- Remote work flexibility/work hour flexibility
- Sales commission
- Performance awards
- Years of service awards
- Stock options (for employees of publicly traded firms)
- Food and/or snacks
- Wellness resources
- Pet insurance
- Telemedicine/telehealth
- Fertility benefits
- Child and dependent care benefits
- Commuter benefits
- Relocation assistance
- Sabbatical (paid or unpaid leave for a specified period after working for a certain period)
- Employee discounts
Employee benefits are an essential part of any compensation package. As you can tell, there are many different types of employee benefits. Employers need to consider the needs and wants of their employees, as well as their overall benefits budget. Some benefits are required by law, so it’s wise for employers to consult with an employee benefits attorney to ensure compliance.