Also referred to as fringe benefits and perks, benefits consist of monetary and non-monetary compensation that is provided to employees. The total compensation, or value, an employee places on a job is influenced by the benefits the company makes available to them or their family.
Employers offer benefits to employees in order to provide additional security, which improves the company's ability to retain workers. Typical categories of benefits include:
- Paid Leave: includes vacation days, sick time, and holiday pay.
- Retirement Benefits: pension plans, 401k plans, 403b and other contribution plans.
- Premium Pay: payment that is supplementary to normal wages that are owed when the employee works on a holiday, weekend, or is otherwise moved to a temporary shift.
- Insurance: term life insurance, health insurance, disability, and dental insurance.
- Training: access to both in-house classroom studies as well as reimbursement for college tuition expenses.
The human resources department is usually responsible for maintaining and administering a company's benefits programs.
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