All You Need to Know About Employee Benefit Program

Employee benefits are additional benefits given to employees by the employer. These benefits are in addition to the employee's regular pay and income.

There are various types of employee benefits, such as group health insurance, retirement benefits, education loans, and more.

The purpose of these programs or benefits is to keep employees engaged and satisfied in their jobs. These benefits help employees stay in their jobs for the long term, that is, making them loyal towards their workplace.

The company's employee benefits program may vary according to the organisation's size, industry, employee demographics and policies.

Employee benefits are an important part of an employee compensation package. Typically, employee benefits are classified into four main types.

Health and Wellness Benefit: One of the essential employee benefits includes health and wellness programs for employees. These programs include health insurance, vision insurance, dental insurance, mental health counselling services, gym memberships, etc.

Time off and Leave Benefits: Another employee benefit is time off and leave benefits. These benefits include vacation leave, paid holidays, sick days, parental leave, extended leave, and more.

Work-Life Balance Benefit: Work-life benefits include flexible work arrangements for employees. These benefits include remote work options, child care, elder care assistance, employee assistance programs, and more.

Financial and Retirement Benefits: Financial and retirement benefits for employees include financial planning assistance, pension programs, employee stock ownership programs, and more. This plan helps employees save for retirement days.

Organisations need to establish employee benefit programs to comply with legal regulations. Besides this, if an employer has a strong employee benefits program, it offers various benefits to the organisation, such as:

Finding and Retaining Talent: One significant benefit of employee benefit programs is finding and retaining talented employees. If the employer offers a lucrative employee benefit package, the talent is more likely to join or stay in the organisation for long.

Fulfilling Legal Requirements: Certain employee benefits, such as workers' compensation, are mandated by law. Failure to comply with the law can invite legal repercussions for employers.

Boosting Employee Morale: Employee recognition and reward programs, such as paid time off, retirement benefits, bonuses, etc., help boost employees' morale. When employees are looked after and cared for at their workplace, they are more likely to be content and engaged at work, which improves their morale.

Improving Well-Being and Health: Another significant benefit of workplace or worksite wellness programs is improved well-being and health of employees. Benefits like gym membership, health insurance and others help in improving employees’ overall well-being and health. These benefits can also act as proactive measures to prevent health issues and promote a healthier lifestyle.

Enhancing Productivity: One of the essential benefits of employee benefit programs is increased productivity. If an employee is happy and satisfied with an organisation's policy, he will be more effective and productive at work. If an employee is productive at work, it will help in the organisation's growth.

Some of the common employee benefits offered by the organisation in India are:

Public Holidays: One of the main benefits offered by almost every organisation in India is public holidays. The public holidays are considered non-working days for employees without any deduction from the pay. The public holidays in India can include national and regional holidays.

Maternity and Paternity Leave: Maternity leave is offered by almost every organisation in India. If the female employee has worked in the organisation for 80 days in the preceding 12 months, then the employee is eligible for maternity leave. However, various private organisations have also started offering paternity leave or flexible parental leave to their employees.

Designation Changes and Raises: Employees are concerned about their designation and salary raise. Designation plays a crucial role in both social and professional circles. Employees who perform well at their jobs tend to receive promotions, which generally lead to a designation change and raise by the employer.

Casual and Sick Leaves: Employees in India also receive paid sick leave or casual leave per year. This leave benefit allows employees to care for their own well-being and sick family members.

Group Health Insurance: One of the leading employee benefits offered by organisations is group medicalim policies to their employees. The employer offers a group health insurance policy that covers comprehensive health care benefits, including hospitalisation, outpatient services, prescription drugs, and preventive care coverage. The premiums are typically fully paid by the employer or sometimes are offered on a contribution basis.

Paid Time Off: Many employees in India are also entitled to earned leave, which is typically 15 days for private sector employees. If the employee doesn't use their paid time off or earned leave in a year, they are eligible to carry it forward for subsequent years.

Daycare Provisions: Another significant benefit offered by the organisation is daycare provision for employees joining after maternity leave. Under this, employees are eligible to take advantage of childcare facilities funded by their employer.

Employee Wellness Program: The health and wellness program for the employees helps in providing regular health check-ups, gym membership, yoga classes and other facilities to employees. The employer takes various other health initiatives under this program to promote a culture of health and wellness.

Employee Assistance Program: The purpose of the employee assistance program is to provide supportive resources and counselling to employees going through personal or professional challenges. There are several benefits of employee assistance programs such as better mental health, enhanced productivity, work satisfaction and more.

Transport Allowance: Many organisations offer transportation or shuttle services to their employees to and from the work site. This provision not only reduces the employees' travel expenses but also offers safety to employees who generally work late due to professional responsibilities.

Work From Home Facility: Another common employee benefit offered by many organisations is a work-from-home facility for their employees. This is generally offered for various reasons, such as sick parents, travelling expenses, and more. With this benefit, employers are able to retain employees who are ready to leave their jobs for these reasons.

Vouchers: Vouchers are another benefit offered by the employee. These vouchers can be for clothing, restaurants, shoes, etc. With these vouchers offered by the employer, employees can save money on their personal expenses. It is a great initiative for companies who want to spend less on retaining their best employees.

Bonus: A bonus is part of the employee recognition and reward program. It is offered to employees who do their jobs efficiently. It can be extra or additional pay apart from the salary or designation change.

Employees are a significant part of any organisation. That's the reason organisations spend on business insurance in India such as group health insurance and more. These insurance policies help businesses and their employees.

With rising medical costs and changing lifestyles, offering a group medical claim policy is crucial for businesses. The policy offers health and financial security to employees, which helps employers retain their talented employees.

Tata AIG is a renowned insurance company that offers affordable group health insurance plans. Employers can customise their insurance policies according to their business size and requirements.

Employees today look for lucrative employee benefits when joining any firm. The employee benefits offered by the company help create a positive environment in the organisation.

With various benefits, employees work dedicatedly in their jobs, which helps unlock their maximum potential. It also helps employers achieve their financial goals.

Not just this, with a lucrative employee recognition program, employers can attract a more talented workforce.

What is the concept of employee benefits?

Employee benefit, also known as perks, is offered to employees by employers over and above their wages and salaries.

What is the most common type of employee benefit?

The common types of employee benefits include health insurance, retirement plans, paid medical leave, public holidays, and more.

What is the objective of employee benefits?

The purpose of offering employee benefits is to appreciate the employee's work and role within the organisation.