Employee Benefits: A Complete HR Guide for 2024

Work is changing, that much is clear. Millions of people quit their jobs in the “Great Resignation,” seeking better opportunities and quality of life. Remote work is no longer a perk but a standard expectation for many employees.

In this evolving landscape, employee benefits have become more than just add-ons to a paycheck. Instead, they’re a lifeline for companies looking to attract and retain top talent.

In this article, we’ll discuss everything you need to know about building a compelling benefits package for your employees in 2024 and how Mosey can help with business compliance.

What Are Employee Benefits?

Employee benefits are the extras beyond your salary that make up your total compensation package. Think health insurance, paid time off (PTO), retirement plans, or help with childcare expenses.

But more than that, employee benefits are a powerful tool within your HR arsenal. They contribute to your employees’ overall well-being and peace of mind. That in itself is a big deal, yet these benefits also ensure financial security and job satisfaction for your workforce.

The options for employee benefits are vast and varied. From insurance plans that cover health, dental, disability, and life to wellness programs, family leave, and beyond, the choices can seem endless.

Moreover, each benefit serves a unique purpose, from protecting your workers’ health to helping them save for the future. If you work in HR management, crafting the perfect employee benefits package is a challenge and an opportunity. You need to strike the right balance, which can be a tall order.

Consider the following:

Weigh your employees’ needs against your company’s budget
Have a solid understanding of what it is that your team values most
Be able to tailor your offerings based on those values
Communicate the value of your employee benefits clearly and effectively

It’s a big responsibility, but it’s a chance to make an impact at your company and in your employees’ lives.

What Are the Types of Employee Benefits?

You’ll want to consider offering your employees many different types of benefit categories. We’ll start with one of the most important: health and wellness.

Healthcare

We all know that a healthy workforce is a happy and productive one. That’s why offering comprehensive health benefits is key.

Health insurance is often the cornerstone of a benefits package. It can cover various medical expenses, from routine checkups to major surgeries. There are several types of health plans to choose from:

PPOs (Preferred Provider Organizations): PPOs offer greater flexibility when choosing doctors and specialists. However, they often have higher premiums.
HMOs (Health Maintenance Organizations): These plans often have lower premiums but require you to choose a primary care physician and get referrals for specialists.
HDHPs (High Deductible Health Plans): These plans have lower premiums but higher deductibles, meaning you pay more out of pocket before your insurance kicks in. They often come with Health Savings Accounts (HSAs), which let you save money tax-free for medical expenses. A Flexible Spending Account (FSA) is similar but employee-sponsored, meaning it won’t travel with you if you change jobs.

If your company has 50 or more full-time employees, the Affordable Care Act (ACA) requires that employers offer health insurance that meets certain standards. Be sure to check with the Department of Labor for the latest guidelines.

Additional Health Benefits

Health insurance is just the beginning. You can also offer additional coverage like:

Dental Insurance: Covers routine cleanings, fillings, and more complex procedures.
Vision Insurance: Helps pay for eye exams, glasses, and contact lenses.
Prescription Drug Coverage: Reduces the cost of medications for your employees.
Telemedicine: A convenient way for employees to get medical care from home.

Specialized Care

As the workplace becomes more inclusive, so should your benefits. Consider offering:

Transgender Healthcare: Coverage for hormone therapy, mental health counseling, and gender-affirming surgeries.
Fertility Benefits: Assistance for employees struggling to conceive, including coverage for fertility treatments.
Mental Health Coverage: Providing access to counseling, therapy, and employee assistance programs (EAPs) shows your commitment to your employees’ well-being.

When you offer a range of benefits, you invest in your employees’ physical and mental health. As a result, your business can enjoy increased productivity and lower healthcare costs.

Financial Security and Retirement

A solid financial foundation is essential for peace of mind. As a human resources professional, you can help employees prepare for their future with the right retirement benefits.

Retirement plans are the bedrock of financial security. They provide a way for employees to save for their golden years, and business owners can also contribute to these savings.

There are two main types of retirement plans:

Defined Benefit Plans (Pensions): These promise a specific amount of money to employees upon retirement, usually based on their salary and years of service. Pension plans are less common these days.
Defined Contribution Plans: These allow employees to contribute a portion of their salary, and employers may match a certain percentage of their contributions. These are much more common.

The most popular type of defined contribution plan is the 401(k). There are also 403(b) plans for nonprofit employees and 457 plans for government employees.

It’s important to understand that retirement plans are regulated by the Employee Retirement Income Security Act (ERISA), a federal law that protects employees’ retirement savings. Make sure your benefits program complies with ERISA regulations.

Additional Financial Security

Retirement plans aren’t the only way to provide financial security. You can also offer:

Life Insurance: Provides a payout to an employee’s beneficiaries in the event of their death.
Disability Insurance: Short-term disability replaces a portion of an employee’s income if they cannot work due to an illness or injury. Long-term disability provides coverage for an extended period of time, sometimes until retirement. Keep in mind that some states require employers to offer short-term disability.

The more benefits you offer, the more you show your employees that you care about their financial health. In turn, you can boost worker loyalty and employee satisfaction.

Time Off and Leave

We all need a break sometimes. PTO, or paid time off, is another popular benefit that can go a long way in promoting employee work-life balance. PTO can be used for vacation, sick leave, and personal or mental health days — whatever your employees need to rest and recharge. It’s also a regular part of a comprehensive benefits package.

Family and Medical Leave Act

The Family and Medical Leave Act, or FMLA, is a federal law that allows eligible employees to get as much as 12 weeks of protected, unpaid leave every year. This leave is for specific family or medical reasons, such as the birth of a child, caring for a sick family member, or dealing with a serious health condition.

However, not everyone qualifies for FMLA leave. Employees must have worked for your company for at least 12 months and worked at least 1,250 hours during that time.

Also, the FMLA only applies to companies with 50 or more employees. It’s vital to stay informed about the FMLA’s requirements and your state’s specific laws.

Other Types of Leave

In addition to PTO and FMLA, you might consider offering other types of leave:

Parental Leave: This can be paid or unpaid, allowing new parents to bond with their child.
Sabbaticals: While more common in larger companies, sabbaticals can be a valuable way to offer extended time off for rest, personal growth, or professional development.
Unpaid Leave: This allows employees to take time off for personal reasons, even if they don’t qualify for FMLA or have used all their PTO.

As an HR professional, you can show employees you truly value them by offering multiple leave options.

Work-Life Balance and Additional Perks

Employees need time for the things that matter most: family, hobbies, rest, and enjoying life. When your team has a healthy work-life balance, they’re happier, more productive, and engaged.

Forget the rigid nine-to-five. Today’s employees want flexibility. That could mean flexible work schedules where they set their own hours or remote work options that let them work from home (or anywhere else). Offering flexible work arrangements can support employee morale and improve employee retention.

Many of your employees are probably juggling family responsibilities alongside their careers. You can offer childcare benefits and resources to make their lives less stressful. These benefits can range from helping find childcare providers to on-site daycare at your company.

Fringe Benefits

Fringe benefits are the extras that can set your company apart. They’re the perks that go beyond the standard benefits package and show your employees you truly care about their well-being.

Here are a few examples:

Commuter Benefits: Offer transit passes, parking reimbursements, or bike-sharing programs to help your employees save money on their commutes.
Employee Discounts: Partner with local businesses to offer deals on gym memberships, entertainment, and more.
Educational Assistance: Invest in your employees’ future by helping them pay for continued education or professional development courses.

Fringe benefits are a chance to get creative and show off your company culture. You could offer on-site fitness classes, free snacks, or even bring-your-pet-to-work days. The possibilities are endless.

What Is Multi-State Compliance?

Let’s talk about the other side of employee benefits: multi-state compliance. If your business operates in more than one state, you know it’s not as simple as following a single set of rules. Each state (and sometimes each city or county) has its own unique laws and regulations regarding payroll and employee benefits.

Understand that what works in one state might not fly in another. For example, the minimum wage isn’t universal. It can vary widely from state to state, and even within a state, different cities or counties might have their own minimum wage requirements.

Then, there are overtime rules, unemployment insurance requirements, workers’ compensation regulations — the list goes on and on. It’s enough to make any HR professional’s head spin.

And even if you manage to figure out all the different regulations, they’re not set in stone. Laws change, and new regulations pop up. What was compliant yesterday might not be today. That’s why staying on top of compliance is an ongoing process, not a one-time deal.

The good news is that you don’t have to take on compliance alone. Tools like Mosey’s business management platform serve as your personal compliance assistant, keeping a close eye on ever-changing state regulations.

Mosey can ensure your benefits packages are always up to snuff, regardless of your employees’ location. We can also handle some of your administrative work using our compliance automation, freeing you up to focus on the tasks that matter most.

How To Build a Benefits Package

At this point, you should have a pretty good handle on employee benefits. But what goes into creating an appealing benefits package? We know it needs to be tailored to your team’s values, so let’s start there.

Employee Needs

The first step in creating a winning benefits package is understanding what your employees actually want. What are their pain points? What would make their lives easier or more fulfilling? The best way to find out is to ask them directly. Conduct surveys, organize focus groups, or have informal chats to get their feedback.

Remember, your employees are not a monolith. Their needs and preferences will vary depending on age, family situation, career goals, and lifestyle.

For example, a young, single employee might be more interested in student loan repayment assistance, while a parent might prioritize childcare benefits. The better you understand what your employees value, the easier it will be to craft appealing packages.

Budgeting

Offering employees a comprehensive benefits package is a great way to show you care about their well-being. That said, you need to be realistic about your budget. After all, you don’t want to offer benefits that you can’t sustain in the long run.

Start by setting a budget for your benefits program. After that, prioritize the benefits that matter most to your employees while keeping an eye on the bottom line. Don’t be afraid to get creative with cost-sharing options.

For example, you could offer different levels of insurance benefits or allow employees to contribute to their retirement savings through pre-tax deductions. Just remember to find a balance between your budget and coverage. A benefits package that works for you and your employees is a win-win.

Communication

Even the most amazing benefits package won’t matter if your employees don’t know about it. That’s why clear, concise communication is essential.

Give your employees easy access to benefits literature. Create an online portal, hold informational sessions, or even offer one-on-one consultations with HR representatives. Explain the benefits in plain language, avoiding jargon and technical terms.

Highlight the value of each benefit by sharing real-life examples of how they’ve helped other employees. For instance, you could share a story about an employee who was able to take parental leave without worrying about their job security or one who paid off their student loans thanks to your tuition reimbursement program.

If managing all of this makes your head spin, know you don’t have to go it alone. Mosey can take some of the weight off your shoulders. Let us help you create compliant benefits packages and ensure your employees have the support they need.

When you listen to your employees, monitor your budget, and communicate clearly, you can easily build an appealing benefits package. If your team feels valued and supported, they’re more likely to be engaged and productive. It’s a winning scenario for everyone.

Mosey Helps You Stay Compliant

In the end, employee benefits are a vital part of business operations. They’re a way to show your team you care about them as people, not just employees. In today’s working world, that’s more important than ever.

A thought-out benefits package helps attract and retain great talent. Admittedly, that’s not always an easy thing to do as an HR professional, especially at a midsized company that continues to grow. However, you can combat these challenges by helping your employees equally thrive at work and in their personal lives.

Remember, benefits are always changing, so don’t be afraid to make adjustments as needed. Book a demo of our services to learn how Mosey can support your HR operations.

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