Employee Benefits.

At Humba-HR-Consultants we believe in tackling topics from the fundamental prospect. Most employees offer their services for salaries and remuneration at large. Therefore the remuneration has to change now and again so that they feel valued and appreciated for the efforts, time and work that they are giving the organisation in the duration they are employed.   Employee benefits and (especially in British English) benefits in kind (also called fringe benefits, perquisites, perqs or perks) are various non-wage compensations provided to employees in addition to their normal wages or salaries.

 In instances where an employee exchanges (cash) wages for some other form of benefit is generally referred to as a 'salary packaging' or 'salary exchange' arrangement. In most countries, most kinds of employee benefits are taxable to at least some degree. Examples of these benefits include: housing (employer-provided or employer-paid), group insurance (health, dental, life etc.), disability income protection, retirement benefits, day-care, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education, and other specialized benefits.

The purpose of employee benefits is to increase the economic security of staff members, and in doing so, improve worker retention across the organization. The term also perks) is often used colloquially to refer to those benefits of a more discretionary nature. Often, perks are given to employees who are doing notably well and/or have seniority. Common perks are take-home vehicles, hotel stays, free refreshments, leisure activities on work time (golf, etc.), stationery, allowances for lunch, and—when multiple choices exist—first choice of such things as job assignments and vacation scheduling. They may also be given first chance at job promotions when vacancies exist.

There are some types of employee benefits that are mandated by law, including minimum wage, overtime, leave under the Family Medical Leave Act, unemployment, and workers compensation and disability. There are other types of employee benefits that employers are not required to offer, but choose to provide to their employees. There are other types of employee benefits that are provided by the company as benefits for employees, however the employer is not required to offer them and the employee is not entitled to receive them. These types of employee benefits that are offered are at the discretion of the employer or are covered under a labour agreement, so they will vary from company to company.

Types of Employee Mandated Benefits:                 

• COBRA
• Disability
• Family and Medical Leave Act
• Minimum Wage
• Overtime
• Social Security Disability Insurance
• Unemployment Benefits
• Workers Compensation

Types of Employer Provided Employee Benefits:

• Hazard Pay
• Health Care
• Maternity, Paternity, and Adoption Leave
• Paid Holidays

Many employers consider benefits plans an integral part of the total compensation package offered to its employees.  And while these benefits programs are typically administered by employers, many times employees are asked to contribute small premiums to enjoy coverage.

Employers usually offer their employees benefits for one or more of the following reasons:

Attracting and retaining talented employees.

Aligning benefits packages with those offered in the marketplace.

Promoting higher levels of morale among employees.

Providing opportunities for promotion or advancement as workers resign, retire, or move to other positions within the organization.

Keep in mind that no individual benefit will provide for all employee needs, it is usually a combination of benefits that is most effective in meeting the employer's objectives.

Most Common Employee Benefits Offered Today

We're going to finish up with a few more interesting statistics - whether you're looking for a job or just looking for some benchmark information on what's being offered in the marketplace today.  By examining this list you can get a better idea if your existing employer, or a potential employer, is offering you a competitive array of benefits.

Statistics in March 2009, the following is a list of the most common benefits offered in the workplace today.

Benefit Type	Employers Offering
Life Insurance	90%
Vacation Pay	77%
Holiday Pay	76%
Medical Care	71%
Retirement Plans	60%
Education Assistance Programs	49%
Non-Production Bonuses	46%
Employee Assistance Programs	40%
Healthcare Reimbursement Accounts	32%
Dependent Care Reimbursement Accounts	30%
Wellness Programs	23%
Job-Related Travel And Accident Insurance	22%
Employer Assistance For Childcare	15%
Fitness Centres	13%
Long Term Care Insurance	12%
Adoption Assistance	10%
Stock Options	8%
Subsidized Commuting	5%
Flexible Workplace	4%
Employer Provided Personal Computer	2%

Once again, it's not surprising that the benefits fulfilling essential financial and social needs of employees top this list such as life insurance and paid leave; while we see more "luxurious" benefits such as stock options and employer-supplied personal computers are offered to less than 10% of workers.