Definition
What are optional benefits?
A critical part of the total compensation puzzle is benefits. What is the right balance of benefits versus compensation? Are you providing the correct number and variety of benefits given your industry and location? ERI, known for its robust salary survey database, also has the optional benefits data that you need to ensure that your business stays competitive in an ever-growing market.
An often-overlooked aspect of compensation is optional benefits for both part-time and full-time employees. We are not talking about required benefits, such as social security or workers’ compensation. We are talking about non-monetary benefits that make your organization competitive in hiring or retaining the talent currently on your payroll. Examples include medical benefits, retirement benefits, and paid time off (PTO).
What are optional benefits?
A critical part of the total compensation puzzle is benefits. What is the right balance of benefits versus compensation? Are you providing the correct number and variety of benefits given your industry and location? ERI, known for its robust salary survey database, also has the optional benefits data that you need to ensure that your business stays competitive in an ever-growing market.
An often-overlooked aspect of compensation is optional benefits for both part-time and full-time employees. We are not talking about required benefits, such as social security or workers’ compensation. We are talking about non-monetary benefits that make your organization competitive in hiring or retaining the talent currently on your payroll. Examples include medical benefits, retirement benefits, and paid time off (PTO).
An often-overlooked aspect of compensation is optional benefits for both part-time and full-time employees. We are not talking about required benefits, such as social security or workers’ compensation. We are talking about non-monetary benefits that make your organization competitive in hiring or retaining the talent currently on your payroll. Examples include medical benefits, retirement benefits, and paid time off (PTO).
Importance
Why should I care about optional benefits?
Optional benefits are incredibly important for attracting employees to your company and keeping your current employees. From entry-level to C-suite, employees are drawn to, motivated by, and retained by a well-designed benefits package. It reflects both your reputation and culture. It should also strike a balance between what the company requires and what personnel genuinely wants.
Here is a quick list of reasons why you should care about benefits:
- Attract highly qualified employees
- Keep your rate of staff retention high
- Reduce recruitment and training costs
- Cultivate a positive and engaged workplace
- Maintain flexibility in your compensation plan
Why should I care about optional benefits?
Optional benefits are incredibly important for attracting employees to your company and keeping your current employees. From entry-level to C-suite, employees are drawn to, motivated by, and retained by a well-designed benefits package. It reflects both your reputation and culture. It should also strike a balance between what the company requires and what personnel genuinely wants.
Here is a quick list of reasons why you should care about benefits:
Here is a quick list of reasons why you should care about benefits:
- Attract highly qualified employees
- Keep your rate of staff retention high
- Reduce recruitment and training costs
- Cultivate a positive and engaged workplace
- Maintain flexibility in your compensation plan
How We Can Help
ERI has compiled a database of some of the most common benefits being used by businesses in the United States and Canada to reward their employees. It features data for Benefits Offered (including medical, dental, vision, prescription drug, paid holidays, paid vacation, paid sick leave, retirement, and telecommuting), Health Care Coverage, and Paid Time Off (PTO).
Statistics for these benefits can be found in ERI’s Assessor Platform so that you know which benefits are the most valuable for the type of business you have. ERI’s employee benefits survey data can be filtered by geographic region, organization size (number of employees), and industry, allowing you to accurately match with peers in your business. Below, find descriptions of several types of benefits data for the United States reported in our Assessor Platform:
Statistics for these benefits can be found in ERI’s Assessor Platform so that you know which benefits are the most valuable for the type of business you have. ERI’s employee benefits survey data can be filtered by geographic region, organization size (number of employees), and industry, allowing you to accurately match with peers in your business. Below, find descriptions of several types of benefits data for the United States reported in our Assessor Platform:
The Average Cost of Medical Benefits
The cost of medical benefits can vary widely depending on the type of plan offered to employees. It is important to know how much the average health plan costs within your industry to ensure that you are not overpaying. On top of that, consider the breakdown of health care costs being paid by the employee versus the employer.
Medical Benefits for Part-Time Employees
While you are required under the Affordable Care Act to provide medical benefits for full-time employees if your company employs over 50 full-time employees, you are not required to offer medical benefits for part-time employees. However, it could be beneficial to offer them if it is standard practice in your industry.
Dental and Vision Benefits
Unlike medical benefits, you are not required to offer dental and vision for full-time employees. That said, dental and vision benefits can be valuable additions to your total compensation package. In general, dental benefits are provided more often than vision benefits.
Retirement Benefits
Retirement benefits, whether a 401(k) or pension, are usually provided to help employees plan for retirement over the course of their careers.
Additional Vacation Days
Paid vacation days are not required for full-time workers in the United States, but generally are expected by most employees. The number of vacation days usually increases as the employee remains with the company.
Telecommuting Benefits
Telecommuting benefits have been around for a few decades now. But, because of the COVID-19 pandemic, remote work has become much more common in many industries. Telecommuting may entail employees working completely remotely or a hybrid model in which employees can work from home a few days each week.
With current benefits survey data in hand, you can rest easy knowing that your company is offering a competitive employee benefits package. In today’s hiring climate, it is imperative to have quality benefits information to design an effective total compensation package that both attracts and retains top talent.
Contact us to learn more about accessing ERI’s employee benefits data, whether you are a current ERI subscriber, interested in becoming a new subscriber, or simply want to know about the features that we offer.