Today’s workforce is more mobile, remote, and independent than ever before. As a result, employee benefits are changing with the times. That means more telework and flexibility options, but also an increased focus on benefits that directly impact day-to-day life. From healthcare to childcare, many employee benefits now revolve around quality of life outside the office, but what does that mean for employers? Keep reading to find out!
This article will explore the best benefits to offer your employees in 2023 and explain why they matter more than ever.
Employee benefits are the perks that come with a job. They include things like health insurance, retirement savings plans, and paid time off. The specific benefits offered by employers vary widely depending on the industry and country the company is based in. However, there are some general classifications that can help you navigate the landscape.
For example, legally required benefits are required by law. These include paid sick leave, minimum wage, and sometimes health insurance. Fringe benefits are optional benefits such as group health insurance, retirement savings plans, and life insurance. Finally, perks are things like free snacks, company swag, and work-from-home days.
Let's take a closer look at the different types of benefits and how they work from an employer’s perspective.
Legally required benefits are the benefits that you must provide employees as a condition of employment. For example, in the US, there are certain benefits that must be provided to employees or eligible dependents. In addition to being required, they also function as a tax advantage for both you and your employees.
Fringe benefits, on the other hand, are benefits that are not required by law but that you choose to provide. For example, paid sick leave is a legally required benefit, while a retirement savings plan is a fringe benefit.
Perks are employer-provided benefits that do not fit into either of the other two categories. This category might include things such as free tea and coffee, a free lunch, or a company mug, things of this nature.
Pre-tax employee benefits make a big difference in terms of overall quality of life. By providing these sorts of benefits to your employees you are empowering them to save more of their money for the big things in life, like getting married, raising a family, buying a home, and so on.
Some of the best pre-tax benefits you can offer include things such as:
Of course, these are only a few alternative employee benefits that you can offer, but they all come with tax advantages, so they are well worth considering. That said, let's look at what employees desire the most so that you can offer the best benefits to your employees in 2023.
There are a few things that all employees seem to desire. The first is a flexible work schedule. Whether it's telecommuting or the ability to work from home, an increasing number of people want more control over their work schedule.
Another big trend is healthcare coverage. Employees want the security of knowing they won’t go bankrupt if they get sick. They also want the option of investing in a plan that’s cheaper but with fewer benefits.
Vacation time seems to be a deal breaker these days. It used to be that most employees worked all year and maybe had a week or two of paid vacation time. That doesn’t fly anymore. The more vacation time you can offer the better.
Also, many companies are now investing in auxiliary perks that can make a big difference in the lives of their employees outside of work. Things like childcare and home cleaning services are fantastic perks that most employees really value and appreciate.
Now that we’ve discussed the different types of benefits, how they work, and which ones are desirable, let’s look at the best benefits to offer your employees in 2023. These benefits are all highly sought after and will make your employees happier and more loyal to the company.
Paid vacation time is a legally required benefit in many countries. However, it is also a great fringe benefit for employees. As a result, many companies are ditching the standard two weeks of vacation and offering more time off. Possibly the biggest trend in vacation benefits is offering paid time off for non-traditional workers like contractors, freelancers, and remote employees.
Health and dental coverage is one of the most common and important employee benefits. These days, more employers are offering fully covered health and dental plans. This can be difficult, though, when trying to decide how much to contribute to these plans. The golden rule is to contribute enough to make these plans valuable, but not so much that it hurts the company’s bottom line.
Childcare is one of the biggest expenses that many families face. With the cost averaging $10,000 a year in the US, many parents turn to family members and friends. While this can help, it can also add stress and strain on relationships. Childcare subsidies are an increasingly common way for companies to help employees manage these costs. It is also an extremely helpful fringe benefit for employees who need outside assistance caring for their children.
Most people spend, on average, about an hour every day cleaning their homes. Oftentimes, they do this after work, when they are already tired, and really just want to relax. One trend that’s on the rise is offering home cleaning services to employees. As mentioned, there are companies such as TIDY, that offer this as a pre-tax benefit. It’s one of the most valued benefits you can provide to your employees and everybody in your company will appreciate this tremendously.
Employer-sponsored 401(k) plans have been around for decades. However, in recent years, more companies have begun to offer matching 401(k) contributions. This benefit is essentially free money for employees. It helps them save money for retirement, and it doesn’t cost the company much money because of the tax benefits that come with these plans.
Employee benefits play an important role in attracting and retaining top talent. They also help keep employees healthy and productive while reducing the risk of employee turnover. Nowadays, the competition for good employees is fierce, and more companies are offering great benefits to attract the best workers. By offering the benefits discussed above, you'll have a great chance of attracting highly qualified employees to your company.
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