What are the 5 Major Types of Employee Benefits?

A job seeker lands on a job to earn for his family’s survival. He works day and night to boost the organizations’ profit to earn as much as he can. But the salary is not the thing for which he will be encouraged to work. Other factors affect the employee’s performance and simultaneously the company’s performance. 

To understand the needs of the employees and encourage them to enhance their performance, an employee assistance program must be initiated and implemented by every organization to sustain their best employees for the long-term success of the organization. But what is an employee assistance program?

Employee assistance programs help to identify the employee benefits from the feedback of current employees in the organization. In addition, it also helps to identify the new job seekers in the market, that if provided to them will attract the current and future employees to pursue their career in that particular organization or not. It will not only improve the financial position of an organization. But it will also increase its performance to lead and receive more green investors to secure that organizations’ place in the market. Now let us discuss 5 major types of employee benefits further in this article.

5 Major Types of Employee Benefits

The following the most fundamental type of employee benefits need to be provided are:

Benefits At Work

person holding pencil near laptop computer

The benefits at work include; the flexible hours of work, food, beverages, pick and drop services, employee clubs, and intrinsic and extrinsic rewards and the most mandatory skills development.

The skills can be provided in the form of advanced courses whose fees should be paid by the organization to motivate employees for further studies. It will improve the employee’s performance in effectively fulfilling the organizations’ objectives. Moreover, it will also gain the company’s reputation.

The employee clubs will freshen the employees and activate their energy level and intellect. It will help them to derive success in both the financial and non-financial goals of the organization.

Health Insurance

Health insurance is not only needed for the employees working in manufacturing plants but also for every employee working in offices. It is because accidents can happen anywhere, such as while travelling for an office meeting or if we consider the new normal of work from home, accidents may occur at homes too. Further, health insurance should also be for employee’s immediate family members.

Social Security and Medicare Contributions

These contributions are paid from the employee salary by the employees and employers as payroll deductions while they work which will benefit them after retirement or if the employee becomes disabled or catches any certain medical condition.

Post-retirement Benefits

It pertains to pensions, a safety net to enjoy and live their remaining life comfortably after ending their professional careers. It is a popular type of benefit not only popular but also compulsory by the governments to provide it to their employees who served for their country’s success.

Unemployment Insurance

This type of insurance is administered by the government in case an employee involuntarily loses his job. That employee must receive some compensation for the short time unless he gets employment in any other organization.

Final Words

The above list presents the fundamental benefits that any employee needs, but the list continues as per the circumstances and job description of the employees. In any case, these must be provided not just to encourage and attract employees to your organization but also to provide them with everything under their lawful rights. Moreover, this guidance is not only for employers but also for employees to make aware of their rights that should be asked when selling their skills and hard work.  

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