How Employee Benefits Support Your Well-being

Employee benefits are non-wage compensations that companies offer in addition to employees’ salaries. They can include health insurance, retirement benefits, daycare, and flexible working arrangements. Offering the right employee benefits can increase employee morale and attract top talent.

1. Paid Time Off

Paid time off (PTO) allows employees to take a break from work. This includes vacation days, sick days, personal days, and holidays. Paid time off is one of Boeing employee benefits. When companies provide ample PTO, they reduce burnout and stress, contributing to absenteeism and lower productivity.

They also support health and well-being by allowing employees to recharge and explore new experiences. Many states and the federal Family and Medical Leave Act (FMLA) guarantee job-protected unpaid time off for qualifying reasons like bonding with a child or caring for an ill family member.

Providing this benefit helps employers save money by reducing the cost of lost wages due to unscheduled absences. Plus, employees are more likely to inform their employer about planned absences when they can count on paid time off.

2. Health Insurance

Employee health insurance is a type of group medical coverage that provides payment for some or all of an enrollee’s medical costs. It is provided through employer-sponsored benefit plans or public programs administered by states.

Employers are vested in providing health insurance to their workers because it improves labor-market outcomes, such as productivity, and reduces absenteeism. It may also attract workers with other characteristics the firm values, such as forward-looking individuals and those less likely to move jobs.

Employment-based health insurance is much less expensive than individually purchased health care coverage. This is because employer plans can leverage economies of scale, avoid adverse selection costs, and simultaneously cover many people. Employees can select from various health insurance plans offered by their employers.

3. 401(k)

401(k)s are employer-sponsored retirement plans where employees can divert portions of their paychecks into investments that grow tax-deferred. Some employers match employee contributions dollar-for-dollar or at a certain percentage, meaning the company contributes extra money to your account.

The employee owns these funds, meaning you can take your investment account if you leave the company. Your employer provides a summary plan description (SPD) and includes important details like how to make contributions, the employer’s match policy, and other relevant information.

Offering a robust 401(k) will show candidates you are committed to their long-term financial security beyond their time at the company. This can be a significant differentiator for top candidates, especially when competing with similar salaries at other companies.

4. Flexible Spending Accounts

Financial well-being is often a considerable concern for employees. Employees are worried about being able to meet their bills and may be stressed out about saving for the future. Employees feel insecure about their jobs, especially during pandemics and other economic challenges.

Fringe benefits are a variety of non-cash payments that employers give employees in addition to salary. These include flexible medical and dependent care spending accounts (pre-tax accounts to pay for certain expenses), retirement plans, tuition assistance, and bonuses not tied to production.

These perks support your well-being by helping you save on healthcare costs, take better care of yourself, and grow professionally. They can help you avoid burnout by offering yoga breaks, physiotherapy sessions, and more. They can also help you stay motivated during challenging times by ensuring your job security.

5. Employee Assistance Programs

Employee assistance programs (EAP) support employees with work or life-related issues that can affect their job performance. These can include dealing with stress, grief or losing a loved one, addiction or chemical dependency, and navigating family or personal relationships.

Financial services are also available, including budgeting advice, loan repayment, and debt consolidation. Employees can also get help with legal and family matters, such as adoption, childcare, eldercare, and divorce.

Final Words

Many EAPs offer lifestyle and well-being improvement programs, like yoga classes, healthy food initiatives, subsidized gym memberships, or mentoring programs. These can be an excellent way for companies to demonstrate their commitment to employees’ health and well-being. Increasingly, employees seek a balanced work-life balance, and adding these benefits can boost your r