What Categories of Employee Benefits Should a Worker Consider?
There are thousands of categories of employee benefits. Each company uses a unique combination of them, so it's highly unlikely for three companies of the same nature to offer the same benefits to their employees. Although the employee benefits trend is still on the rise, it is quite important to note that companies offer different types of employee benefits based on the remuneration package they have available.
Some companies are up for negotiating the benefits with their potential new workers. It's part of employee management. This is something you should always have in mind before accepting any job offer. Getting to know your worth is crucial if you want to find job opportunities that offer a good remuneration.
With that being said, there are major types of employee benefits that every worker should get to know. This way can have a better idea of what they can look for when they're negotiating the benefits they'll receive with their potential employer or maybe what to take into account next time they have the opportunity of negotiating with their employer.
Now that you’re in context, it is time to get to know some of the different types of employee benefits that you should take into account while you’re seeking new job opportunities. By the end of the article, you should have a better idea of what you should negotiate with your potential employer so you can feel comfortable in your new position.
Major categories of employee benefits
We’ve talked about how many employee benefits exist, such as an employee purchase program. However, all of them can be put into one of the four categories we’ll explain below. These categories include medical insurance, life insurance, retirement plans, and disability insurance. Other people assess them as work, health, financial security, and lifestyle – but in the end, they're all the same.
Here we include a few other categories you can take into account.
Let’s start exploring each option thoroughly and see what you should take into account while negotiating the benefits you’ll obtain in your next job opportunity.
1. Medical insurance
The first of the categories of employee benefits is related to medical costs. It comprehends benefits like hospital rooms and prescription drugs but also takes into account physician or surgeon fees. The benefits you'll obtain are specified by the company, and some of them may also offer you dental or optical fees. Sometimes, members of the direct family (spouse and children) may be included in these benefits.
As an extra note, many employers also offer to pay your medical insurance premiums – either completely or a determined fraction. Other times, the employee may be required to pay a specified percentage of that cost.
2. Disability insurance
Next up, we have disability-related benefits. Here the demographic is very specific and is divided into two categories of employee benefits, short-term and long-term. Please note that employers rarely offer this benefit, although it can be one of the many perks for work from home.
Firstly, short-term insurance implies situations where people cannot work due to a recent accident or illness. The best example of this is car accidents, which happen every minute according to statistics. An employer may offer the injured employee a few paid weeks while they recover from their injury or illness.
Next up, we have long-term disabilities that includes people with permanent or long-term conditions that prevent them from working. A good example of this could be someone with spinal injuries and movement issues. That person would be able to receive the benefits until they reach retirement age.
3. Life insurance
The third main category of employee benefits includes the typical life insurance benefits, which are meant to provide protection to you finally if you die. Only the employee’s spouse or children will be able to obtain the benefit, which will be granted in a single payment.
It is more common than disability insurance, and it is often granted to full-time workers. The company may not offer it to the employee up front, but it is possible for them to offer it privately. Private company insurances are usually expensive.
4. Retirement perks
Some companies nowadays allow you to acquire retirement benefits. These funds are meant to help you once you end your career, and the plans vary from a company to another.
5. Domestic partner benefits
If the employer is not married, their domestic partner may still receive benefits if the company offers them. It is extremely rare but is not impossible to find. However, the company will likely provide them with certain requirements to proceed with the benefit.
6. Paid time off
PTO is a common employee perk, although companies do not always offer it. If the company offers this benefit, you will get paid during days where you don't work – such as vacation leave, holidays, or sick leave. Sometimes, all the mentioned benefits are offered separately.
There are more benefits out there. It all depends on the employer.
You can find thousands of categories of employee benefits out there as different companies offer you diverse benefits or none at all. The company does so based on its size, so small businesses will likely offer fewer benefits than big enterprises.
It can be quite tricky to find a company that offers all the perks you’d like to obtain, but there’s always some room for negotiation. You need to know what you need and what to expect before you can negotiate for better benefits for your employees.
If you’ve reached this point, you’re already making great advancements. It is necessary for you to document yourself with as much information as possible about your worth before you can apply for other jobs. It can take you a while, but all the effort you’re making for this will be worth it in the end.
Employees are making their needs visible more than ever as the younger generations are replacing the older ones.
What categories of employee benefits do you think that companies should offer to your employees?
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