Depending on the type of work a person does, the compensation in the form of benefits a company offers on top of wages can be highly significant. A worker’s wages are important, but they are not the only thing that holds value. This article in the Houston Chronicle points out how wages are just one of the key elements of the overall benefits package.
Savvy employers learn what matters most to their employees and then do everything they can – not just to provide these benefits, but to make sure that employees know what they’re getting. When sharing the value of a new position it is important to share the entire package beyond the offered salary. Here are some key elements which any potential employee should be made aware of when a job offer is being provided.
- Health Insurance: According to the Kaiser Family Foundationthe average employer will pay $4,401 towards health insurance, which is roughly 80% of the cost of health insurance.
- Paid time off/sick leave: Paid time off is offered in several different ways, such as a pool of paid time off (PTO) in hours, a flat number of vacation days, or two categories: vacation days and sick days. Several factors, such as years with the company and position, determine how much time off is received. On average, an employee gets two to three weeks of time off each year. According to the Bureau of Labor Statistics, the average employee gets 7.6 paid holidays, 8.1 vacation days and 8 paid sick leave days their first year (after an initial period). Vacation and sick leave increase annually by approximately 1-3 days (combined).
- 401(k): The 401(k) is a tax-deferred retirement savings plan in which employee investments are often matched by the employer. According to Statistic Brain the average employer contribution to a 401(k) plan is 3% of the employee’s current salary – close to 50% of the employee’s typical maximum tax-deferred contribution.
- The Extras: Beyond the standard areas of the benefits listed above, be sure to include any extra perks that are included. These can be large or small, but even the smaller ones add up. For example, free parking can be worth thousands of dollars when compared to paid alternatives. Here are some examples:
- Stock purchase plans
- College reimbursement
- Free parking
- Telecommuting (work from home) options
- A discounted food program
- Discounts on select products
- Discounts on select services
- Reimbursement on the price of adoption
- Yearly performance bonuses
- Employee milestone bonuses
- Profit sharing
- Free beverages such as coffee, tea, soft drinks and bottled water
A compensation package summary will help visualize for employees everything their current package comprises. Visit COMPackage.com to find out how you can inexpensively implement an Employee Benefits Package Reporting system for your employees.