Businesses emphasize employee benefits with comps, perks

The importance of employee benefits isnumerousand varied, and difficult to overstate.

Employee benefits are compensation orperksthat an organization provides workers in addition to their base salaries and wages.Any indirect compensationthat an employer offers its workers can be an employee benefit, and any benefit, voluntary or mandatory, can be an employee benefit.

As companies are aware thatcompetitive benefits packages can improve employee recruitment, retention, and morale,they’realso aware that quality compensation packagesthat include attractive benefits can be criticalto an organization’s success. These quality compensation packagescan help keep employees engaged and upbeat, and in turnencouragethem to makevaluable contributions to the company.

Offering employee benefits has several advantages for employers. A recentPeopleKeepsurvey found that 81% of employeesbelieveanemployer’sbenefits package is an essential factor in whether they accept a job.

“When speaking to employees or prospective candidates, our team provides a well-rounded view of all that Donegal offers as an employer,” said Amy Testerman, assistant vice president of Human Resourcesat theDonegal Insurance Group. “While compensation is important, a meaningfully crafted benefits package for employees is a key component to help reinforce our value of care by committing to employees, their wellbeing and our business strategy of providing a superior employee experience.”

Employee benefits can be found in variousforms. While some employee benefits are mandatory under law, others are optional. Business owners are required by law to offer certain employee benefits, including contributing to their employees’ Social Security and Medicare.Additional benefits beyond the mandatory requirements are referred to as fringe benefits or employee perks.

Whilebenefitrequirementsvarywith each state, including rules on sick time or remote work expenses, thereare standard benefit regulations everyemployer must follow.

Employers are required by federal law to provide health insurance if they have 50 or more full-time equivalent employees. Federal law also requires employersto provideemployees withtime off to perform military service; follow all workers’ compensation insurance requirements; pay state and federal taxes toward unemployment insurance; andcomply withthe Family and Medical Leave Act.

Employers are not required by federal law to provide employees with benefits such as retirement plans; dental insurance or vision plans; life insurance plans; paid time off, such as paid vacation and holiday leave; or wellness benefits.

At the same time, employers know it is in their best interest to offer strong employee benefits packages that caninclude non-wage compensation such as health insurance benefits; life insurance; paid time off; profit sharing; retirement benefits; and flexible work arrangements.

“While healthcare costs continue to increase at an alarming rate, our benefits strategy embraces the review of additional benefits on an ongoing basis,”Testermansaid. “This includes not only physical benefits, time off, mental and financial benefits; butalsoopportunities for career growth and development.”

According to thePeopleKeepsurvey, employees find five benefitsin particulartobe of primary importance - health benefits; dental insurance; paid time off; retirement plans; and vision insurance.

While these benefitsaren’tmandatory for organizations, adding voluntary benefits to a compensation package can give a company a competitive edge. When designing a benefits package, companies canconsider the type of employeesthey’reseekingtohire. Benefitsareimportant toattractpotential employees and createapositivecompany culture.

“A competitive benefits package is critical to the recruitment process, as we look to add top talent to our team,”saidTesterman. “Attracting talent in the insurance industry is competitive, and other employers are looking for the same talent.”

An attractive benefits package can highlight an employer’sworth and increase employees’ morale. In addition, it can help organizations recruit andretainemployees.

“We continue to benchmark our offerings against others in the industry to remain competitive, supporting our value of excellence,” Testerman said. “We strive to offer a benefits package that supports our employees and enables them to feel valued and inspired, allowing them to be there when it matters most for our agents and policyholders.”