Q:

What is the importance of employee benefits?

A:

Quick Answer

Employee benefits are offered in order to meet state and federal compliance. Various kinds of benefits also serve to lure the best applicants to an organization and to retain existing workforce. It is important to maintain employee benefits as a means of loyalty and talent management.

Continue Reading
What is the importance of employee benefits?
Credit: Jose Luis Pelaez Inc Blend Images Getty Images

Full Answer

Employee benefits refer to programs that are aimed toward the betterment of workforce and support long-term care of personnel. These resources are split depending on whether they are required of businesses to enforce or enacted by compulsion.

Mandatory employee benefits are leveraged by the federal government. These resources include Social Security taxes, unemployment, disability insurance and workers' compensation. All of these programs require regular reductions in pay checks but provide essential assistance to citizens in times of need.

Voluntary employee benefits are those awarded by organizations in order to lure and retain talent. These options often focus on motivation and incentivization, combining employee empowerment with improved customer service. Popular applications include remote work options, mobile devices in the work environment, fitness programs and commissions for sales.

Health insurance is offered by state and federal organizations and is also administered by businesses. It is a required employee benefit but is enforced in a voluntary fashion thanks to public options.

Learn more about Managing a Business
Sources:

Related Questions

Explore