Benefits are a type of compensation paid by the employer in addition to an employee's base salary. Benefits are a part of the compensation package of an employee.

Why Employee Benefits are important

Health coverage

Benefits typically include some form of healthcare coverage, which is important for keeping employees, and often their families, healthy and helping them pay for medical expenses. The Affordable Care Act requires companies with more than 50 employees to provide health insurance to 95% of full-time employees or pay a significant fee to the IRS.

Health benefits help employees and their families afford regular wellness exams, preventive care, prescription medications and medical treatments. If a candidate or of their dependents requires regular healthcare, they might prioritize jobs that offer comprehensive health insurance plans. Further, if employees are encouraged to stay healthy and given the tools to do so, they are likely to feel more energetic, have fewer sick days and be more effective at work.

Work-life balance

Work-life balance, or the harmony between your career and your personal life, has become increasingly important to employees. Benefits that improve work-life balance include vacation time, unlimited or generous paid time off, flexible hours and the ability to work from home. These types of benefits can help reduce employee stress and fatigue and prevent burnout. Employees are likely to be more productive at work and at home as a result.

Benefits such as flexible hours and vacation time also allow employees to spend more time with their families and friends, allowing them to have more fulfilling personal lives. They are also particularly important for parents who must balance their career with child care or other family commitments.

Job satisfaction

A good benefits package shows that a company cares about its employees. Benefits such as paid time off, workplace perks, wellness programs and tuition reimbursement can make employees feel valued. This can lead to employees who are happy to be in their job, loyal to the company and motivated to do good work.

Employee benefits are also important for workplace morale because a happy and positive team is likely to be productive and work well together. Also, job satisfaction from good benefits reduces turnover rates, leading to stronger, more stable dynamics within a department.