4 Categories Of Employee Benefits You Should Know

Written exclusively for Expat Network by Pacific Prime UK

Whether you are a jobseeker, HR professional, or a reader who wants to discover more, this article written by our friends at Pacific Prime looks at the 4 categories of employee benefits and highlights some of the popular benefits to be aware of.

The 4 employee benefit categories

In general, most benefits fall under one of four categories, namely:

• Work
• Health
• Financial security
• Lifestyle

Benefits at work

When at work, the following types of work benefits help to give employees the support and help they need to perform well.

Paid training and development

Companies that have the funding normally pay their employees to attend training and professional development, especially new employees that have joined. This is an interesting benefit for employees as they can grow and learn without worrying that their pay will be affected or training opportunities wasted.

Company equipment

For employees to perform their jobs effectively, employers normally assess their needs and create a list of items, resources, or work setups required. These may include, but are not limited to:

• Computer/portable devices
• IT accessories
• Desk or stand
• Seating (ergonomic chair, yoga ball, etc.)
• Fan
• Office supplies (pens, paper, highlighters, etc.)

Employee clubs and activities

There are many possibilities that employers can offer employees like arranging running groups, celebrating special occasions like birthdays and anniversaries, or offer employees a free or subsidized gym membership. These are introduced to help promote wellness and develop a positive culture within the company.

Leaves

It is inevitable that employees will fall ill and/or need a break to refresh and reset. For this reason, employers offer employees the following types of employee benefits:

• Paid vacation time – This is also known as annual leave (AL) and gives employees a set number of days to take off from work per annum and still be paid. The more days offered, the more attractive the job offer, and vice versa.
• Paid sick leave – This is normally a given by law so employees can recover from sickness and not worry about coming into work when their health needs attention
• Family leave – Employees with children or elderly members of the family may appreciate this benefit more as it gives them the chance to attend to their family’s needs.

Benefits for health

When looking for a job, applicants typically search for an employer that offers a comprehensive group health insurance plan and other health benefits attached to the company plan. A typical group health insurance plan consists of the following:

• Medical coverage – This benefit will cover things like doctor’s visits, consultations, regular check-ups, emergency medical intervention, and much more. Employees are normally informed by an employee benefits specialist of the hospitals that offer direct billing, which offers a more pleasant claims experience.
• Dental insurance – Most employers provide dental coverage as part of their overall employee medical benefits, but sometimes dental insurance is a separate benefit. Dental plans generally cover routine examinations, cleaning, and dental procedures like root canals, fillings, and oral surgery.
• Mental health coverage – Mental wellness is a trending benefit in companies of all sizes due to the negative impact that stress, pressure, and prolonged work can have on a worker’s mental health.

Benefits for financial security

Other than having job security, employees will also be interested in having enough money to fund their lifestyle when they retire, or to support them if the worst-case scenario was to happen, like loss of life, succumbing to a health problem, or becoming disabled after an accident. The realities are real and employers normally offer financial security by providing the following types of benefits:

• Life insurance policies – Most companies, especially large companies, provide life insurance plans as part of an employee benefits package. Usually, the life insurance term lasts for as long as the employee works for their employer.
• Retirement/pension planning – This benefit allows employees to reduce taxable income, accrue interest over time, and have the employer contribute accordingly. Employers also benefit as employer contributions are tax-deductible.#
• Employee assistance program (EAP) – An EAP offers confidential counseling services for employees with personal issues that affect their work. This includes tackling financial problems, creating a debt consolidation plan, or offering advice for family problems at home.
• Disability benefits – This type of benefit guarantees an employee’s salary in the event they are injured, become ill, and cannot perform their work duties. While disability benefits can vary between employers, many offer some form of short-term disability coverage in the event employees are injured on the job.

Lifestyle benefits

This category of benefits helps employees maintain a work-life balance and offers some flexibility in how they plan their lives around work. More so, this category is becoming increasingly important for employees as work conditions change, especially during the COVID-19 pandemic. Here are some benefits that employers can offer to employees:

• Travel expenses – Many employers employ individuals for roles that require travel in order to complete business objectives, which is why they will cover the costs of travel and spending for employees.
• Living stipends – As more companies are shifting employees to working from home due to the COVID-19 pandemic, some are offering living stipends as part of their benefits package. Companies may invest in employees set up at home or supply of work-related materials.

Wrapping up on employee benefits

The above-mentioned categories help bring together the different kinds of benefits that companies can offer to their employees. As no two companies are the same, it’s important to bear in mind that the needs and requirements of every company will be different. This also applies to their budget and long-term goals. The next step in seeking an employee benefits package is to reach out to an employee benefits specialist like Pacific Prime.

Whether you’re looking for a corporate employee benefits solutions package, expat health insurance, or family health insurance, look no further than Pacific Prime. As a leading insurance broker, Pacific Prime has the expertise to help you compare health insurance and secure international health insurance coverage through the ideal plan for your needs and budget. Contact Pacific Prime for a free quote or to receive expert advice today.