Financial Benefits are an ideal way of showing employees you care. From travel reimbursement and fertility treatment assistance, to contributions towards retirement plans, these perks can ease employee costs while simultaneously increasing morale.
These benefits of business often get neglected or discounted during strategic planning and cost/benefit analyses, so here are some practical steps for measuring and valuing them.
Annual Increment
An annual increment is an increase to an employee’s salary or wages awarded annually, depending on various criteria such as performance and length of service. Many companies use annual increments as a way of showing appreciation to employees for their hard work while simultaneously making them feel valued within the organization.
Annual increases are a popular practice in workplaces and can serve as an incentive to employees who strive for improved performance. It’s crucial that companies have clear policies in place outlining how salary increases will be implemented – this will avoid confusion or misunderstanding and foster an open culture.
Salary increments can be an excellent way to motivate employees and boost productivity, from offering a percentage increase on current base salaries or an extra bonus based on performance to offering stock options as an incentive – though note that these don’t fall under your annual increment policy and should be negotiated separately.
The model policy follows guidelines from Canada’s HR council and may be utilized by any organization worldwide. It includes an outline of the process – typically meetings between managers and employees – as well as criteria for awarding salary increments.
Prior to asking for a salary increase, it’s essential that you research your worth thoroughly. Gaining an understanding of industry standards and your value to the company as well as any major accomplishments or successes should help. When writing your letter be sure that it follows a professional format with one-inch margins and single spacing; include an introduction with your request details before concluding the letter with your signature at the bottom.
Longevity pay is an annual lump-sum payment made to eligible employees at the university for each full year they have worked at the institution, equal to $60 times their number of full years qualifying service. Eligible employees include faculty and FEAP who have been appointed full-time benefits eligible positions at the university; temporary and nonclassified roles do not qualify.
Group Health Insurance
Group health insurance is offered by employers to their employees as an affordable health benefit package, helping to attract and retain top employees. In many instances, additional perks such as dental and vision coverage add even greater value to this type of plan.
Group health insurance works by spreading risk across a larger pool of insured people, which benefits both insurer and insured by reducing claims risk and providing more competitive premium rates for both. Furthermore, group health policies may offer additional medical coverage such as dental, vision or pharmacy benefits.
Employers and their employees alike often value the convenience and cost savings provided by group health insurance, which helps strengthen bonds between employer and employee while offsetting rising healthcare costs and increasing quality of life for them and their families.
As such, more employees are opting for this form of health coverage – nearly 50% of Americans receive their health care through group plans – but it should be remembered that such benefits may be tied directly to employment status, leaving workers vulnerable in case their employment status changes unexpectedly.
Though there may be drawbacks associated with this policy, it remains one of the most popular types of health insurance coverage on the market. Furthermore, small businesses may receive tax credits by offering this coverage to their employees.
Consideration for group health insurance can include professional or trade associations, chambers of commerce, fraternal organizations and employer-sponsored retiree health programs. A business owner may also purchase it for his/her family, spouse and dependents – eligibility varies by state but rules and regulations can be complex; to get the best value deal it’s wise to work with an experienced professional to make sure your company receives its benefits.
Travel Reimbursement
Travel expenses make up an integral part of an employee’s compensation, so employers must reimburse any travel-related costs they incur as this ensures they don’t pay out-of-pocket. Unfortunately, expense reimbursement procedures can often be complex; companies need an easy, convenient, and fast process in place that allows their employees to access reimbursement funds efficiently – software solutions exist that can assist here.
An effective travel reimbursement process begins with a policy that clearly outlines which expenses qualify for reimbursement and how they should be submitted and documented. Common travel expenses reimbursed include airline tickets, hotel accommodations, meals and car rentals while personal calls, baggage fees entertainment or alcohol typically do not fall under this category.
An automated expense submission system can simplify and expedite the expense submission process, cutting back on paperwork and errors while speeding up processing time for employees – increasing morale while saving the company money on processing time costs.
One strategy for lowering travel expense costs is offering medical travel allowances to employees who travel for work; it provides great financial relief when medical needs arise while away.
When setting up a medical travel allowance program, working with a benefits consultant is crucial to its success. They can assist in crafting a plan tailored specifically to your organization while adhering to all relevant regulations. Furthermore, the consultant can assist with implementation as well as answering any employee inquiries or providing clarification if needed.
Consider adding travel reimbursement benefits into an FSA or HSA program as another means to provide your employees with more flexible financial benefits while still fulfilling ACA “excepted benefit ” requirements. However, be sure to work closely with your third-party administrator (TPA) so they can determine any implications this might have on your company’s stop-loss policy.
Bonuses
Financial wellness benefits can provide employees and their families with assistance for everyday money matters, including emergency savings accounts, student loan repayment programs, assistance paying for college or buying a home, financial planning services and emergency savings accounts. Such benefits can ease financial strain while improving employee wellbeing – something which drives engagement.
Employees appreciate intangible and creative benefits, but they also want to know their company is taking an interest in their financial wellbeing. Offering such benefits is an effective way of showing your appreciation and may help attract new talent to your team.
Companies are adapting their benefits packages in response to economic uncertainties by adapting them to meet employees and employers alike. Workers cite external stressors such as mortgage payments and student loan debt as hindering their performance at work; employers have responded by increasing financial benefits such as retirement planning guidance or access to a Financial Advisor as measures against this problem.
The annual State of the Workplace Study also revealed that workers are increasingly interested in non-standard benefits like child and elder care assistance, financial counseling and fitness/wellness resources as supplemental benefits are becoming an attractive perk to employees, particularly millennials looking for additional value from their employer.
Popular benefits for millennials may include tuition reimbursement and career development opportunities. This can help young professionals advance their careers and build stronger futures for themselves and their families. Additional perks may include flexible working arrangements or home office setup.
Employers can offer such incentives to employees as an effective strategy to retain talent as the economy continues its recovery and talent becomes harder to come by. One way employers can do this is by increasing company matches on employees’ retirement savings plan contributions or offering budgeting tools so employees can track how they are spending their paycheck and save more effectively.