Managing employee benefits is an important and costly endeavor for employers. While most employers are required to give necessary benefits like Social Security contributions, worker’s compensation insurance, and unemployment insurance, the majority of other benefits are optional and selected by the company.
Benefits design and selection are important aspects of total compensation expenses. Benefits can account for up to 40% of total compensation expenditures in some situations. Therefore, employers should have a well-thought-out benefits plan design that fulfills both employee needs and corporate objectives due to the cost investment and relevance of employee benefits in recruiting and keeping employees.
some of the most common benefits programs include:
- Medical insurance
- Life and disability insurance
- Retirement income plan benefits
- Paid-time-off benefits
- Educational assistance programs