Explore the most popular employee benefits your business should provide

Employee benefits are crucial for retaining your current employees as well as attracting new, quality talent.

Continue reading to learn about the five most popular benefits that employees look for that your business should offer.

#1: Medical insurance 

Medical insurance is one of the most popular and desired benefits that an employer can offer. In 2021, 91% of workers were employed by a business that offers health benefits to at least some of its workers. [1] Medical insurance is an umbrella term that typically covers: 

• Healthcare insurance covers general health issues, such as hospital accommodations, annual doctor’s appointments, prescriptions, and more. 

• Vision insurance is not typically included in health insurance policies. It usually includes the costs of annual eye tests, contributions towards glasses and contacts, and medically necessary surgeries. 

• Dental insurance is also not typically included in an employee’s healthcare insurance plan. It generally covers preventative dental care, braces, and gum disease treatment. 

Employers may also offer a flexible spending account (FSA) or a health savings account (HSA). An FSA is a savings account that employees can put money into to pay for certain out-of-pocket health care costs. An HSA is also a savings account that allows employees to set aside money for healthcare costs. 

An HSA differs from an FSA because you must qualify and meet three requirements in order to be eligible for an HSA: 

• You are not claimed as a dependent on anyone else’s tax return.
• You are not enrolled in Medicare.
• You are covered under a high deductible health plan (HDHP).

#2: Life insurance 

Many employers also choose to offer their employees life insurance policies, which is a contract between an insurer and the insurance policyholder. 

A life insurance policy guarantees the insurer pays a sum of money to designate beneficiaries upon the death of the policyholder in exchange for premiums paid by the policyholder during their lifetime.

Read more: 

How a PEO can help your business with benefits administration

#3: Retirement plans 

There are several types of retirement savings plans that employers can offer with the most common being a 401(k) plan. 401(k) plans are predominantly funded by employee contributions, but many employers also choose to match their employee’s contributions. 

Employee contributions are tax deductible in the year they are made, and if your employee withdraws their funds before retirement, they can roll over their funds into a traditional IRA or into the 401(k) plan of another employer. It’s important to note that any withdrawn funds that are not transferred are subject to ordinary income taxes as well as an early withdrawal penalty.

#4: Disability insurance 

Disability insurance is another benefit that employers should consider offering to their employees. 

Short-term disability insurance is intended to cover for employees for a short period of time following injury or illness that keeps them from working. It typically covers periods between three to six months.

Long-term disability insurance covers for employees for a longer period of time, typically five, 10, or 20 years. This covers employees for more serious disabilities that leave them unable to work either indefinitely or permanently.

It’s important to note that disability insurance is currently legally required for employers to provide in New York, New Jersey, Rhode Island, California, Hawaii, and Puerto Rico. [2]

#5: Paid time off (PTO)

Paid time off (PTO) is a great way to improve your employee benefits package. Employees rate paid vacation as the second most-important benefit, after health care insurance. [3] A quality PTO policy will allow your business to attract talented employees and improve retention rates. 

Depending on what works for your business you can distinguish between the amount of paid sick days, personal leave, and vacation days or include a certain amount of PTO that can be used for any of those reasons. 

Another option is to include an unlimited PTO policy where your employees are free to take as much time as needed with prior approval. This can help attract key talent and build trust with your employees. 

Is your business looking for a PEO to assist with benefits administration? 

PER has provided outsourced HR services to small and medium-sized businesses across Central Florida for over 25 years. We offer the extensive capabilities of a full-service PEO, while maintaining the personal connection of a small business.

“PER provides our clients with an easy one-stop-shop for employee benefits. We offer our clients individual plans through our licensed broker. Our broker assesses your business’s budget and needs to find a solution that works best for your business and employee,” states Veronica Ramos, PER’s Senior HR Generalist

Our team of qualified benefits specialists can assist you and your business in optimizing your employee benefits package. Through our benefits administration services, we  provide access to high-quality health, vision, and dental insurance for employees and their families that include HMO, POS, and PPO plan options.

Ready to get started? 

Contact us today! 

Sources:

1: KFF | 2021 Employer Health Benefits Survey. 

2: SHRM | Which states require employers to have a short-term disability plan? 

3: SHRM | More People Are Taking Time Off, and That’s Good for Business