What Are Employee Benefits and Why Are They So Important?

What Are Employee Benefits?

There are different types of employee benefits—which are also referred to as voluntary benefits, worksite benefits, and compensation packages—and the benefits that are offered depend on the specific employer and job. Employee benefits are non-cash, indirect payments, services, or other assistance that are provided in addition to regular wages in order to create competitive packages to attract potential employees, help them take care of the things they need, and retain them. Here is a list of employee benefits that are most commonly offered:

• Paid Leave – Paid leave is one of the most common types of employee benefits. It includes things like paid time off, paid vacations, paid sick leave, and more. According to the U.S. Bureau of Labor Statistics, over 70% of employees in the private sector have access to paid sick leave, and nearly 80% have access to paid vacations. 92% of state and local government employees have access to paid sick leave and 60% of those employees have access to paid vacations.
• Care and Relief Funds – Employers may also offer access to care and relief funds. These funds are used to help employees who are affected by natural disasters, accidents, family emergencies, and other unexpected hardships by providing emergency financial relief. Employees can use these funds to help cover costs and get back on their feet.
• Career Advancement Opportunities – Many employers offer career advancement opportunities that help employees grow and develop professionally. This can involve classes, seminars, workshops, advanced training, and other opportunities that help employees continue to learn and succeed.
• Tuition Assistance – Similar to career advancement opportunities, employers sometimes offer tuition assistance to their employees to help them pay for their education. This can involve employees who are currently still in school or providing financial assistance to an employee who returns to school to further their education.
• Life Insurance – Companies can also offer life insurance to their employees. This provides a lump sum payment to any beneficiaries in the event that an employee dies while still employed at the company. 
• Unemployment Insurance, Disability Insurance, and Workers’ Compensation – These are all different benefits that most companies are required to provide for their employees. Companies pay into unemployment insurance, which can be used if an employee is laid off. Disability insurance protects against loss of income by providing payments to employees who suffer a nonoccupational injury or illness. Similarly, workers’ compensation provides payments to employees who are injured or get sick while on the job. This helps employees make ends meet until they are fit to return to work.
• Time Off for Civic Duties – Companies also offer time off to employees so that they can fulfill their civic duties—jury duty, voting, and more. Whether or not your time off for these duties is paid depends on the specific employer.
• Retirement Plans and Savings Programs – Employers also commonly offer retirement plans and savings programs to help employees prepare for their future after they are done working. There are many types of retirement plans, including 401(k), IRAs, pensions, and more. Usually, companies that offer these plans will match the funds an employee puts into their retirement account.
• Health and Welfare Benefits – Companies often offer health and welfare benefits to their employees. These benefits range from full healthcare insurance coverage to partial payment of medical insurance premiums to healthcare reimbursement plans and more. In addition to regular healthcare coverage, these benefits usually include dental, vision, and prescription coverage.

These are some of the most popular benefits offered by employers, but there are a wide variety of other benefits out there. Each company is unique, so look for employers that offer the benefits you want or need. Now that we’ve gone over what employee benefits are and some of the different types, let’s look at why these benefits are so important.