What Is the Most Common Type of Employee Benefit?
Health insurance, retirement savings plans, wellness programs, education benefits, paid time off, and more are all common types of employee benefits. Because they’ve proven popular with workers, companies should consider each—as well as non-traditional employee benefits—when creating and offering benefits packages to their team.
The 5 types of employee benefits listed above can be typical offerings, and some of them have become expected by most employees.
What are the three common forms of employee benefits?
The three most common forms of employee benefits are health insurance, retirement savings plans, and paid time off. Of course, every company is different, so depending on the organization, other employee benefits might be offered. These three types, however, are generally considered the best employee benefits offered today.
What is the most used employee benefit?
For many companies, the most used type of employee benefit is health insurance. Many employers offer this coverage as part of their benefits package because it can be highly valued by employees and a key factor in their decision to apply for a specific job and accept the job offer. Health insurance can typically include medical, dental, and vision coverage, all of which help employees manage healthcare costs for themselves and their families. Employers may cover a portion of the premium, making it more affordable than some individual plans.
Beyond health insurance, other popular benefits like retirement plans and paid time off are common, but healthcare consistently ranks as the most universally offered and sought-after benefit.
Why are the kinds of benefits offered important to employees?
The importance of employee benefits lies in their ability to support employees’ lives outside of the workplace.
In other words, benefits can help create a more satisfying work-life balance. Benefits can even support workers’ feelings of engagement with their work. For example, among employees who use Workforce Edge to access their education benefits, 91% of Workforce Edge users report their general level of engagement at their current jobs is very or fairly engaged.*
*Source: Workforce Edge User Survey, 2024
Within the category of education benefits, tuition reimbursement can be particularly helpful: a 2022 Amazon and Workplace Intelligence survey revealed a disconnect between what employees value and what employers provide. While a little over half of employees have access to benefits like tuition assistance (51%), cross-training programs (55%), and networking opportunities (55%), the vast majority (over 80%) consider these benefits to be crucial. [4906]
Apart from health insurance, paid time off, retirement savings plans, and education benefits, there are a lot of benefits that employers can offer to their team. They include these 5 types of employee benefits:
Stipends for home office set ups. With stipends, workers don’t have to use their own funds to purchase computers, monitors, chairs, etc. as they customize their workspace to best suit their comfort and needs.
Travel perks. Organizations can also offer discounts on personal travel—including flights and lodging—or offer support for remote work in other cities.
Wellness programs. Wellness programs go further than healthcare insurance by covering gym memberships, wellness apps, onsite fitness classes, and more. The goal of wellness programs is to provide support for employees in as many ways as possible.
Workplace perks. Employers can also offer various smaller perks within the workplace. From a more casual dress code to more comfortable furniture, refreshed décor, and expanded food and beverage offerings, it can be the “little things” that help workers feel more comfortable.
Childcare assistance. Employees with children might need help with childcare, especially when it can be an expensive but necessary service. Some employers offer onsite daycare options so employees don’t have to worry about their kids during the workday.
Why is it important for employees to know their benefits?
Employees who know what benefits are available to them are able to take advantage of those benefits. They can pick from a variety of choices, including those that they consider to be the best employee benefits.
When considering things like education benefits, vendors should work with your organization to create communication strategies that help employees understand what’s available and how they can take advantage of offerings like tuition assistance, scholarships, and other savings. And when employees take advantage of their education benefits and grow their skills, the company can benefit from potential improvements in employee satisfaction and retention.
Workforce Edge can help administer and manage your education benefits and connect your team with the options that will best meet their goals. From traditional degree programs to skill-building and learning and development opportunities, Workforce Edge offers opportunities for workers at every stage of their career.
Schedule a consultation to connect with our team and get started today.
Health insurance, retirement savings plans, wellness programs, education benefits, paid time off, and more are all common types of employee benefits. Because they’ve proven popular with workers, companies should consider each—as well as non-traditional employee benefits—when creating and offering benefits packages to their team.
