Company Benefits for Employees: Benefit Types, Examples, Why You Need Them

Anyone up for a ping pong match? Or a cup of coffee over in the bean bag chair lounge?

Your employees definitely aren’t — not if a gaming table and some squishy chairs are the biggest and boldest perks your company is offering. 

Company benefits are a way to show employees and job seekers your values as a company. Candidates are paying attention to your benefits package —at least 63%, according to Glassdoor— before deciding on a role with your company. 

The best benefit strategiesare well-rounded and enticing. They promote employee wellbeing, offer growth opportunities, and create a healthy and fulfilling working environment for your teammates. So don’t break out the ping pong paddles just yet. Learn what it takes to truly empower your team through company benefits.

What Are Company Benefits?

Company benefits are company-sponsored perks, services, or offerings that provide employees with added value and support beyond their salary. They can make an impact on employee health and wellbeing, help them save for retirement and other long-term goals, encourage team bonding and collaboration, offer additional learning opportunities, and provide access to exclusive discounts and perks.

There are many different types of company benefits and they cover several broad categories, including health and wellness, learning and development, and social perks. Some quick examples include:

• Health insurance
• Retirement savings plans
• Paid time off
• Company outings and events
• Flexible work arrangements
• Reimbursements and stipends

Why Do You Need to Offer Benefits to Employees?

Not only do employee benefitshelp to attract candidates and support employee wellbeing, but they can also help your company to achieve its goals by creating a productive and supportive working environment for employees.

A comprehensive employee benefits package helps you:

• Attract top talent:In today’s job market, company benefits are a key consideration for candidates and job seekers when evaluating potential employers. Nearly half of employees surveyedby Willis Towers Watson say that their company’s healthcare and retirement offerings were a key reason why they decided to accept their positions. They’re essential for any talent acquisition strategy.
• Support employee wellbeing and overall health:Offering access to medical insurance or other healthcare services can help employees stay healthy and manage any existing health conditions. Similarly, company benefits like paid vacation or parental leave can help employees to take care of their physical and mental wellbeing by allowing them to rest, recharge, and focus on other important priorities outside of work.
• Incentivize employees to remain with your company for the long-term:Company benefits can help with employee retention and reduce company turnover. In the same WTW survey, 34% of employees rated their health benefitsas a top reason for staying at their current job.
• Foster a productive and collaborative working environment:Benefits plans also encourage collaboration, mentorship opportunities, skill development, and more. Whether you’re providing company outings or onboarding programs, all company benefits can help to support a strong company culture and encourage positive working relationships.

Types of Employee Benefits

Now that you understand the importance of company benefits, it’s time to explore some of the most common types and their key characteristics.

Mandatory Benefits

Mandatory company benefitsare legally required in some cases, such as health insurance, unemployment insurance, and workers’ compensation. While these types of company benefits are generally standard for larger companies (50 or more employees), it’s important to be aware of the federal and state laws that apply to your business.

Voluntary Benefits

On the other hand, voluntary company benefits are generally optional, and they can vary greatly depending on the company or the industry. Some voluntary benefits may be company-sponsored and paid for entirely by the employer, while others might be offered at a discount through partnerships with outside providers. Some examples of common voluntary company benefits include:

• Gym memberships
• Vacation bonuses
• Flexible work schedules or remote work
• Paid parental leave or additional sick leave
• Student loan repayment

Insurance Benefits

Company benefits can also include a range of insurance plans, including medical, dental, or vision plans, disability insurance, and life insurance. They help employees to manage any major health events or emergencies that may arise during their employment.

Retirement Plans

Retirement benefits can be some of the most complex and nuanced in terms of company offerings. Depending on your company size and goals, you may choose to offer a 401(k) plan, a pension plan, or other retirement options for employees. These types of company benefits can help to incentivize employees to stay with your company for the long-term, especially if you choose to match your employees’ contributions.

Other Fringe Benefits

These addedfringe benefitsmay not fit directly into any of the categories above, but they can still impact your teammates’ physical, mental, and financial wellbeing. They also have a significant impact on company culture and overall employee satisfaction by fostering a greater sense of purpose and engagement with the company.

Some examples of common fringe company benefits include:

• Tuition reimbursementprograms
• Paid time off (PTO) for volunteering or community service
• Team social outings
• Childcare assistance or reimbursement programs
• Flex benefits
• Company lunches, retreats, and social outings

Which Benefits Do Employees Prefer?

As with most company benefits, there is no one-size-fits-all answer when it comes to company benefits preferences. But there aresome perks that employees value more than others.

For instance, health insurance benefits, wellness packages, and retirement options always seem to be near the top of the list. These company perks aren’t extravagant, but they give employees the financial freedom and the peace of mind to invest in their own wellbeing. Other benefits that are often ranked highly by employees include paid vacation time, flexible work arrangements, and family leave.

Use anemployee benefits surveyto figure out if your current benefits package meets your team’s needs, or if they’re looking for other perks.

Why Employee Wellness Should Be Your North Star in Your Benefits Program

Ultimately, company benefits are about more than just getting employees through the door. They should be designed with employee wellness and company success in mind, so that your team can thrive both and off the job.

Some simple ways that you can promote employee wellnessin your organization include offering gym discounts or fitness stipends, implementing company-wide wellness challenges, and prioritizing health education and preventive care. Additionally, fostering a company culture that valueswork-life wellnessand healthy habits can go a long way toward helping your team to thrive both on and off the job.

If you don’t already have a wellness program in place, start by reaching out to one of our wellbeing specialists! We’ll help you put together a program with options for every employee to focus on their health and wellbeing.

References

• Glassdoor Study Reveals What Job Seekers Are Looking For. Glassdoor. July 25, 2018. Retrieved December 13, 2022 from https://www.glassdoor.com/employers/blog/salary-benefits-survey/ 
• 2022 Global Benefits Attitudes Survey. Willis Towers Watson. November 11, 2022. Retrieved December 13, 2022 from https://www.wtwco.com/en-US/Insights/2022/06/2022-global-benefits-attitude-survey 
• Mandatory Benefits a Company Must Legally Provide Full-time Employees. Paychex. October 29, 2021. Retrieved December 13, 2022 from https://www.paychex.com/articles/employee-benefits/employee-benefits-a-company-must-provide 
• 401(k) Plans. Internal Revenue Service. Retrieved December 13, 2022 from https://www.irs.gov/retirement-plans/401k-plans 
• Retirement Plans Benefits and Savings. U.S. Department of Labor. Retrieved December 13, 2022 from https://www.dol.gov/general/topic/retirement 
• What is Tuition Reimbursement & How Does It Work? FRANK. November 9, 2021. Retrieved December 13, 2022 from https://withfrank.org/how-to-pay-for-college/student-loans/how-do-i-manage-my-loans/tuition-refund/what-is-tuition-reimbursement-how-does-it-work/