Employee benefits
Employee benefits and compensations in the form include various forms of non-wages compensation offered to workers as well as their regular salaries or wages. In most cases, instances where an employee trades wages for any other form of insurance-like paid time off or health insurance-is usually referred to by an employer as a “wage replacement” or “wage replacement arrangement.” Such arrangements are not usually covered by worker’s compensation law. But when the terms are defined by the employment agreement or when an employee has declined to accept a promotion or increase in salary, an employee can ask for such benefits.
There are numerous ways that employers make employee benefits more affordable. Many companies give regular salary increases, usually above the minimum legally required. This is done to attract and keep qualified employees. Employers also reduce employees’ benefits when they are hired. This practice, called “disability garnishment,” can result in huge fines for employers who do this.
Some employers also deduct a portion of the employees’ regular salary as an employee benefit. The deduction is only partial and is dependent upon the total compensation paid for each month. However, this practice is illegal in many states. Employees cannot be deducted for things like medical and dental plans. They cannot be deducted from lifetime care insurance premiums. And employers cannot charge Social Security tax on this amount, either.
Another way to pay for employee benefits is through what is commonly referred to as salary sacrifice. Under this option, the employee gives up some of his or her benefits in exchange for a fixed salary. For some employees, this is a popular employee benefits method. It allows them to maintain the same salary level that they have always had. But for others, this can mean reduced living standards. The practice has been criticized by human rights advocates because of this.
In addition to giving up some benefits in exchange for a regular salary, some employers change the type of employee benefits that they offer. Instead of providing the employee with an annual income or a benefits package that will cover medical and dental expenses, the employer may pay only for health care expenses. As a result, some employees who pay for their own health insurance leave the company. This often happens with people who have made enough money to secure an annual income from a previous employer.
In order to keep employees happy and healthy, many employers are looking into employee benefits that can improve employee wellbeing. These employers are searching for companies that provide opportunities for wellness programs and for those who give bonuses for participating in wellness programs. Some wellness opportunities even require employees to take a specific course of action. In turn, these employers are looking for employees who are interested in promoting wellness activities within their workplaces.
Another type of employee benefit that employers are offering is fringe benefits. Fringe benefits could include paid time off, paid vacations, insurance plans for employees who participate in wellness programs and those who contribute to the company’s retirement program. As a general rule, it is more expensive to provide fringe benefits than regular salary retirement packages.
It is important for employers to be proactive about employee benefits. If they are providing benefits to current employees but not to new hires, this can lead to a loss of productivity. For employers who are offering healthcare, it is important to provide health insurance to new hires as well as to long-term contracts for employees who have worked with the company for several years. In the end, employers who offer a variety of employee benefits to workers will be more satisfied overall.
