Some employers are having cutbacks, while others may be getting more creative with the types of benefits and options offered to employees. While this is not an exhaustive list of every type of benefit that can be offered. It is a brief review and summary of what organizations consider to keep their employees happy and content.
U.S. Required Benefits
In the United States, certain benefits are mandated by law. Those benefits include woker's compensation coverage for job-related injuries, Social Security, unemployment insurance, the Family Medical Leave Act or FMLA, Consolidated Omnibus Budget Reconciliation Act also called COBRA benefits for extending insurance, and the Health Insurance Portability and Accountability Act (HIPPA). Some may vary slightly by State, but most are statutory and consistent at the federal level.
Retirement Benefits
There are different types of retirement accounts, and these are not required to be provided by the employer. However, if an employer does provide a retirement plan then the guidelines and standards are very stringent. There are defined benefit plans, defined contribution plans, and individual retirement accounts (IRAs) (which can be set up individually). The Employee Retirement Income Security Act (ERISA) was set up in 1974, and regulates the provisions of an employer provided retirement.
Defined benefit plans provide a clear explanation of the benefit provided and the amount is basically promised or guaranteed by the organization. Less and less companies are using this type of plan due to risk and unknown future costs. A defined contribution plan is more vague as it depends on the amount and gains put into the plan (such as a 401k). The employee assumes the risk if there is a decrease in assets, such as stock.
Insurance
There are different types of insurance. This can include life insurance, medical insurance, short and long-term care insurance for disability, dental insurance, and vision coverage. Employers may cover these costs in full, or split them in some form with their employees.
Other Benefits
Other benefits provided are really only limited by the employer and/or working restraints. However, some employers offer a wide variety of benefits such as paid holidays, paid vacations, paid sick leave, paid bereavement, paid jury duty, and paid military leave. There are also education options such as special training or tuition reimbursement. Some even provide childcare, elder care, domestic partner benefits, legal insurance, time off to volunteer, and even extended leaves for life balance. Other options that are becoming more popular also include flex time schedules, working from home, and job sharing.
Whichever types of benefits an organization provides, they need to try to fit the benefit to the working group. Some employees may favor one type of benefit over another. Either way, organizations want to maximize employee productivity, while minimizing turnover, and a good benefit plan can assist in that goal.
Source
Milkovich, George T. and Newman, Jerry M. (2005) Compensation (8th ed). NY: McGraw-Hill Irwin
