The Advantages of Various Employee Benefits
The advantages of various employee benefits are two-fold. Employees reap tangible and intangible rewards from employer-sponsored benefit programs, ranging from reduced tax liability to access to health care services. The overwhelming advantage for employers who sponsor employee benefit plans is a satisfied, productive and stable workforce.
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Group Health Benefits
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Employers that offer group health care benefits generally pick up the tab for a significant portion of the monthly premium. An employee benefit plan that includes group health insurance can be a tremendous advantage for employees who would not otherwise be able to afford health insurance or gain access to health care providers. The percentage that employees contribute to their health care premiums usually is relatively low compared to the cost of doctors' office visits, surgical procedures and preventative care without insurance coverage. Employees with dependents can save several hundred dollars each month if their employers provide a health care premium subsidy.
Transportation Subsidy
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Employers in large metropolitan area often provide a transportation subsidy to encourage workers to use public transit as an alternative to long commutes, parking fees and sky-rocketing gasoline prices. Employees who take advantage of an employer's transportation subsidy save time, money and wear and tear on their personal automobiles. They also contribute to an eco-friendly environment by reducing the number of cars on the road, and consequently, pollutants in the atmosphere.
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Retirement Savings
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Many employers offer their employees the option to save for retirement through 401k or 403b programs. In addition, companies contribute matching funds based on the percentage employees set aside through payroll deduction. The advantage to employees is the ability to build a nest egg for securely investing their money and some relief from the angst associated with worrying about future income upon retiring from the workforce. Another advantage for employees is reduction of taxable income, especially for pretax contributions to retirement funds. Other companies provide stock purchase programs, employee stock ownership plans (ESOPs) and other long-term investment options for their employees, such as payroll deduction for educational savings.
Sabbaticals
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A benefit offered by few employers is an employee sabbatical. Intel, for instance, provides benefits packages that include an eight-week employee sabbatical every seven years. The advantage to employees is time to pursue personal interests they may not have had the opportunity to explore without full salary and benefits. Employers benefit from improved employee retention, as well as greater productivity and increased performance from satisfied and rejuvenated employees who return to the workplace.
Short-Term and Long-Term Disability
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Employees who need time off for a lengthy illness, serious health conditions or disabling conditions benefit from employer-sponsored programs that provide continued income during a leave of absence. Permanently disabled workers benefit from the income provided through disability payments that protect them and their families from hardship. Additionally, job protection such as that provided by the Family and Medical Leave Act (FMLA) provides employees with assurance that they can return to their jobs even after being on leave for lengthy periods.
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