{"id":937,"date":"2019-08-21T19:19:35","date_gmt":"2019-08-21T19:19:35","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/?post_type=chapter&#038;p=937"},"modified":"2026-03-04T20:57:11","modified_gmt":"2026-03-04T20:57:11","slug":"benefits","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/chapter\/benefits\/","title":{"raw":"Benefits","rendered":"Benefits"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Discuss various benefits<\/li>\r\n<\/ul>\r\n<\/div>\r\n<h2>Legally Required Benefits<\/h2>\r\n[caption id=\"attachment_1061\" align=\"alignright\" width=\"350\"]<img class=\"wp-image-1061\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/08\/23205545\/764px-Signing_Of_The_Social_Security_Act-300x235.jpg\" alt=\"See caption for appropriate alternative text.\" width=\"350\" height=\"274\" \/> 35th U.S. President Franklin D. Roosevelt signing the Social Security Act in 1935.[\/caption]\r\n\r\nBenefits are the elements of an employee\u2019s compensation package other than salary or wage. Some benefits are legally mandated; for example, Social Security, Medicare, unemployment insurance, and workers compensation insurance (which we'll discuss briefly below). Discretionary benefits include paid leave (for example, vacation, holidays, sick or personal days), health, dental and vision coverage, retirement plan, life and disability insurance, wellness benefits. Clarification: \u201clarge employers\u201d are subject to the Affordable Care Act Employer Mandate that requires a minimum level of health care coverage.\r\n<ul>\r\n \t<li><strong>Social Security.<\/strong> Established in 1935 by the Social Security Act, social security is a social insurance program that provides retirement, disability and survivors\u2019 benefits for workers, who contribute to the system by paying Federal Insurance Contributions Act (FICA) taxes withheld from most paychecks.<\/li>\r\n \t<li><strong>Medicare.<\/strong> Medicare is the U.S federal health insurance program for people who are 65 or older, among others.[footnote]\"<a href=\"https:\/\/www.medicare.gov\/what-medicare-covers\/your-medicare-coverage-choices\/whats-medicare\" target=\"_blank\" rel=\"noopener\">What's Medicare?<\/a>\" Medicare.gov. Accessed August 22, 2019. [\/footnote]<\/li>\r\n \t<li><strong>Unemployment Insurance.<\/strong> Unemployment Insurance is a joint state-federal program that provides cash benefits to eligible workers who are unemployed through no fault of their own. All states follow the guidelines established by federal law, but each state sets its own additional requirements for eligibility, benefit amounts, and length of time benefits can be paid. In general, benefits are based on a percentage of your earnings over a recent 52-week period.[footnote]\"<a href=\"https:\/\/www.careeronestop.org\/WorkerReEmployment\/UnemploymentBenefits\/unemployment-benefits.aspx\" target=\"_blank\" rel=\"noopener\">What is Unemployment Insurance and How Do You Know if You're Eligible?<\/a>\" Careeronestop. Accessed August 22, 2019.[\/footnote]<\/li>\r\n \t<li><strong>Workers Compensation Insurance.<\/strong> Workers\u2019 compensation insurance is insurance that covers medical expenses and a portion of lost wages for employees who become injured or ill on the job.[footnote]\"<a href=\"https:\/\/www.progressivecommercial.com\/business-insurance\/workers-compensation-insurance\/\" target=\"_blank\" rel=\"noopener\">A Small Business Owner's Guide to Workers' Comp Insurance<\/a>.\" Progressive Commercial. Accessed August 22, 2019.[\/footnote] Each state has its own unique set of workers\u2019 compensation laws that employers must follow. Workers compensation insurance is paid by employers; premiums are calculated back on employee classification (type of work) and the rate associated with that classification.<\/li>\r\n<\/ul>\r\nA budgeting rule of thumb is to estimate that employee benefits will cost 30% of an employee\u2019s salary. Although that\u2019s clearly a significant cost, benefits can also be a critical differentiator in a competitive labor market. Employer research and salary site Glassdoor reports that 57% of job seekers consider benefits among their top criteria in evaluating a new job.[footnote]Glassdoor Team. \"<a href=\"https:\/\/www.glassdoor.com\/blog\/top-20-employee-benefits-perks-for-2017\/\" target=\"_blank\" rel=\"noopener\">Top 20 Employee Benefit Perks for 2017<\/a>.\" Glassdoor. February 7, 2017. Accessed August 22, 2019.[\/footnote]\r\n<h2>Additional Benefits<\/h2>\r\n<img class=\"alignright wp-image-1080\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/08\/23215723\/conner-baker-M5Zix_4Jc4k-unsplash-e1566597464741-1024x1021.jpg\" alt=\"A father playfully tossing his young child, as he stands ready to catch them.\" width=\"350\" height=\"349\" \/>\r\n\r\nAs companies raise their game, perks such as unlimited vacation and work-from-home Fridays are no longer differentiators. Based on Benefits Reviews posted on the site, Glassdoor identified 20 benefits that transcended the basics and put the offering company in \u201clegendary\u201d status. A few highlights:[footnote]Ibid.[\/footnote]\r\n<ol>\r\n \t<li style=\"font-weight: 400;\"><strong>Paid parental leave.<\/strong> Ikea offers up to four months of paid parental leave to both part-time and full-time employees with at least one year of experience at the company<\/li>\r\n \t<li style=\"font-weight: 400;\"><strong>On-site fitness.\u00a0<\/strong>Reebok encourages employees to reach their personal fitness goals by providing an on-site gym with Crossfit classes.<\/li>\r\n \t<li style=\"font-weight: 400;\"><strong>Gender reassignment surgery.<\/strong> Goldman Sachs offers coverage for gender reassignment surgery.<\/li>\r\n \t<li style=\"font-weight: 400;\"><strong>Pet health care.<\/strong> Scripps Health offers its employees\u2019 health insurance for cats and dogs.<\/li>\r\n \t<li style=\"font-weight: 400;\"><strong>Flexible schedules.<\/strong> Insurance company Swiss Re\u2019s \u201cOwn the Way You Work\u201d program encourages employees to embrace flexibility with their schedules and work remotely.<\/li>\r\n<\/ol>\r\n<div class=\"textbox key-takeaways\">\r\n<h3>Learn More<\/h3>\r\nYou can check out the complete list here: <a href=\"https:\/\/www.glassdoor.com\/blog\/top-20-employee-benefits-perks-for-2017\/\" target=\"_blank\" rel=\"noopener\">Top 20 Employee Benefits &amp; Perks for 2017<\/a>\r\n\r\n<\/div>\r\n<div class=\"textbox tryit\">\r\n<h3>Practice Question<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/38c31310-25c2-4802-90fc-8b885a0a0d46\r\n\r\n<\/div>\r\n<div class=\"textbox exercises\">\r\n<h3>Perspective Point<\/h3>\r\nGlassdoor notes that \u201cwhile benefits and perks are a great way to get employees in the door, they\u2019re not among the leading factors that keep employees satisfied on the job and with a company long-term.\u201d We'll discuss this idea more in <a href=\"..\/chapter\/why-it-matters-building-positive-employee-relations\/\" target=\"_blank\" rel=\"noopener\">Module 10:\u00a0Building Positive Employee Relations<\/a>.\r\n\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Discuss various benefits<\/li>\n<\/ul>\n<\/div>\n<h2>Legally Required Benefits<\/h2>\n<div id=\"attachment_1061\" style=\"width: 360px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-1061\" class=\"wp-image-1061\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/08\/23205545\/764px-Signing_Of_The_Social_Security_Act-300x235.jpg\" alt=\"See caption for appropriate alternative text.\" width=\"350\" height=\"274\" \/><\/p>\n<p id=\"caption-attachment-1061\" class=\"wp-caption-text\">35th U.S. President Franklin D. Roosevelt signing the Social Security Act in 1935.<\/p>\n<\/div>\n<p>Benefits are the elements of an employee\u2019s compensation package other than salary or wage. Some benefits are legally mandated; for example, Social Security, Medicare, unemployment insurance, and workers compensation insurance (which we&#8217;ll discuss briefly below). Discretionary benefits include paid leave (for example, vacation, holidays, sick or personal days), health, dental and vision coverage, retirement plan, life and disability insurance, wellness benefits. Clarification: \u201clarge employers\u201d are subject to the Affordable Care Act Employer Mandate that requires a minimum level of health care coverage.<\/p>\n<ul>\n<li><strong>Social Security.<\/strong> Established in 1935 by the Social Security Act, social security is a social insurance program that provides retirement, disability and survivors\u2019 benefits for workers, who contribute to the system by paying Federal Insurance Contributions Act (FICA) taxes withheld from most paychecks.<\/li>\n<li><strong>Medicare.<\/strong> Medicare is the U.S federal health insurance program for people who are 65 or older, among others.<a class=\"footnote\" title=\"&quot;What's Medicare?&quot; Medicare.gov. Accessed August 22, 2019.\" id=\"return-footnote-937-1\" href=\"#footnote-937-1\" aria-label=\"Footnote 1\"><sup class=\"footnote\">[1]<\/sup><\/a><\/li>\n<li><strong>Unemployment Insurance.<\/strong> Unemployment Insurance is a joint state-federal program that provides cash benefits to eligible workers who are unemployed through no fault of their own. All states follow the guidelines established by federal law, but each state sets its own additional requirements for eligibility, benefit amounts, and length of time benefits can be paid. In general, benefits are based on a percentage of your earnings over a recent 52-week period.<a class=\"footnote\" title=\"&quot;What is Unemployment Insurance and How Do You Know if You're Eligible?&quot; Careeronestop. Accessed August 22, 2019.\" id=\"return-footnote-937-2\" href=\"#footnote-937-2\" aria-label=\"Footnote 2\"><sup class=\"footnote\">[2]<\/sup><\/a><\/li>\n<li><strong>Workers Compensation Insurance.<\/strong> Workers\u2019 compensation insurance is insurance that covers medical expenses and a portion of lost wages for employees who become injured or ill on the job.<a class=\"footnote\" title=\"&quot;A Small Business Owner's Guide to Workers' Comp Insurance.&quot; Progressive Commercial. Accessed August 22, 2019.\" id=\"return-footnote-937-3\" href=\"#footnote-937-3\" aria-label=\"Footnote 3\"><sup class=\"footnote\">[3]<\/sup><\/a> Each state has its own unique set of workers\u2019 compensation laws that employers must follow. Workers compensation insurance is paid by employers; premiums are calculated back on employee classification (type of work) and the rate associated with that classification.<\/li>\n<\/ul>\n<p>A budgeting rule of thumb is to estimate that employee benefits will cost 30% of an employee\u2019s salary. Although that\u2019s clearly a significant cost, benefits can also be a critical differentiator in a competitive labor market. Employer research and salary site Glassdoor reports that 57% of job seekers consider benefits among their top criteria in evaluating a new job.<a class=\"footnote\" title=\"Glassdoor Team. &quot;Top 20 Employee Benefit Perks for 2017.&quot; Glassdoor. February 7, 2017. Accessed August 22, 2019.\" id=\"return-footnote-937-4\" href=\"#footnote-937-4\" aria-label=\"Footnote 4\"><sup class=\"footnote\">[4]<\/sup><\/a><\/p>\n<h2>Additional Benefits<\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-1080\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/4056\/2019\/08\/23215723\/conner-baker-M5Zix_4Jc4k-unsplash-e1566597464741-1024x1021.jpg\" alt=\"A father playfully tossing his young child, as he stands ready to catch them.\" width=\"350\" height=\"349\" \/><\/p>\n<p>As companies raise their game, perks such as unlimited vacation and work-from-home Fridays are no longer differentiators. Based on Benefits Reviews posted on the site, Glassdoor identified 20 benefits that transcended the basics and put the offering company in \u201clegendary\u201d status. A few highlights:<a class=\"footnote\" title=\"Ibid.\" id=\"return-footnote-937-5\" href=\"#footnote-937-5\" aria-label=\"Footnote 5\"><sup class=\"footnote\">[5]<\/sup><\/a><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><strong>Paid parental leave.<\/strong> Ikea offers up to four months of paid parental leave to both part-time and full-time employees with at least one year of experience at the company<\/li>\n<li style=\"font-weight: 400;\"><strong>On-site fitness.\u00a0<\/strong>Reebok encourages employees to reach their personal fitness goals by providing an on-site gym with Crossfit classes.<\/li>\n<li style=\"font-weight: 400;\"><strong>Gender reassignment surgery.<\/strong> Goldman Sachs offers coverage for gender reassignment surgery.<\/li>\n<li style=\"font-weight: 400;\"><strong>Pet health care.<\/strong> Scripps Health offers its employees\u2019 health insurance for cats and dogs.<\/li>\n<li style=\"font-weight: 400;\"><strong>Flexible schedules.<\/strong> Insurance company Swiss Re\u2019s \u201cOwn the Way You Work\u201d program encourages employees to embrace flexibility with their schedules and work remotely.<\/li>\n<\/ol>\n<div class=\"textbox key-takeaways\">\n<h3>Learn More<\/h3>\n<p>You can check out the complete list here: <a href=\"https:\/\/www.glassdoor.com\/blog\/top-20-employee-benefits-perks-for-2017\/\" target=\"_blank\" rel=\"noopener\">Top 20 Employee Benefits &amp; Perks for 2017<\/a><\/p>\n<\/div>\n<div class=\"textbox tryit\">\n<h3>Practice Question<\/h3>\n<p>\t<iframe id=\"assessment_practice_38c31310-25c2-4802-90fc-8b885a0a0d46\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/38c31310-25c2-4802-90fc-8b885a0a0d46?iframe_resize_id=assessment_practice_id_38c31310-25c2-4802-90fc-8b885a0a0d46\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe><\/p>\n<\/div>\n<div class=\"textbox exercises\">\n<h3>Perspective Point<\/h3>\n<p>Glassdoor notes that \u201cwhile benefits and perks are a great way to get employees in the door, they\u2019re not among the leading factors that keep employees satisfied on the job and with a company long-term.\u201d We&#8217;ll discuss this idea more in <a href=\"..\/chapter\/why-it-matters-building-positive-employee-relations\/\" target=\"_blank\" rel=\"noopener\">Module 10:\u00a0Building Positive Employee Relations<\/a>.<\/p>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-937\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Benefits. <strong>Authored by<\/strong>: Nina Burokas. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Untitled. <strong>Authored by<\/strong>: Conner Backer. <strong>Provided by<\/strong>: Unsplash. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/unsplash.com\/photos\/M5Zix_4Jc4k\">https:\/\/unsplash.com\/photos\/M5Zix_4Jc4k<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/about\/cc0\">CC0: No Rights Reserved<\/a><\/em>. <strong>License Terms<\/strong>: Unsplash License<\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">Public domain content<\/div><ul class=\"citation-list\"><li>Signing of the Social Security Act. <strong>Authored by<\/strong>: Ras67. <strong>Provided by<\/strong>: Wikimedia Commons. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/commons.wikimedia.org\/wiki\/File:Signing_Of_The_Social_Security_Act.jpg\">https:\/\/commons.wikimedia.org\/wiki\/File:Signing_Of_The_Social_Security_Act.jpg<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/about\/pdm\">Public Domain: No Known Copyright<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section><hr class=\"before-footnotes clear\" \/><div class=\"footnotes\"><ol><li id=\"footnote-937-1\">\"<a href=\"https:\/\/www.medicare.gov\/what-medicare-covers\/your-medicare-coverage-choices\/whats-medicare\" target=\"_blank\" rel=\"noopener\">What's Medicare?<\/a>\" Medicare.gov. Accessed August 22, 2019.  <a href=\"#return-footnote-937-1\" class=\"return-footnote\" aria-label=\"Return to footnote 1\">&crarr;<\/a><\/li><li id=\"footnote-937-2\">\"<a href=\"https:\/\/www.careeronestop.org\/WorkerReEmployment\/UnemploymentBenefits\/unemployment-benefits.aspx\" target=\"_blank\" rel=\"noopener\">What is Unemployment Insurance and How Do You Know if You're Eligible?<\/a>\" Careeronestop. Accessed August 22, 2019. <a href=\"#return-footnote-937-2\" class=\"return-footnote\" aria-label=\"Return to footnote 2\">&crarr;<\/a><\/li><li id=\"footnote-937-3\">\"<a href=\"https:\/\/www.progressivecommercial.com\/business-insurance\/workers-compensation-insurance\/\" target=\"_blank\" rel=\"noopener\">A Small Business Owner's Guide to Workers' Comp Insurance<\/a>.\" Progressive Commercial. Accessed August 22, 2019. <a href=\"#return-footnote-937-3\" class=\"return-footnote\" aria-label=\"Return to footnote 3\">&crarr;<\/a><\/li><li id=\"footnote-937-4\">Glassdoor Team. \"<a href=\"https:\/\/www.glassdoor.com\/blog\/top-20-employee-benefits-perks-for-2017\/\" target=\"_blank\" rel=\"noopener\">Top 20 Employee Benefit Perks for 2017<\/a>.\" Glassdoor. February 7, 2017. Accessed August 22, 2019. <a href=\"#return-footnote-937-4\" class=\"return-footnote\" aria-label=\"Return to footnote 4\">&crarr;<\/a><\/li><li id=\"footnote-937-5\">Ibid. <a href=\"#return-footnote-937-5\" class=\"return-footnote\" aria-label=\"Return to footnote 5\">&crarr;<\/a><\/li><\/ol><\/div>","protected":false},"author":17,"menu_order":12,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Benefits\",\"author\":\"Nina Burokas\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"pd\",\"description\":\"Signing of the Social Security Act\",\"author\":\"Ras67\",\"organization\":\"Wikimedia Commons\",\"url\":\"https:\/\/commons.wikimedia.org\/wiki\/File:Signing_Of_The_Social_Security_Act.jpg\",\"project\":\"\",\"license\":\"pd\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Untitled\",\"author\":\"Conner Backer\",\"organization\":\"Unsplash\",\"url\":\"https:\/\/unsplash.com\/photos\/M5Zix_4Jc4k\",\"project\":\"\",\"license\":\"cc0\",\"license_terms\":\"Unsplash License\"}]","CANDELA_OUTCOMES_GUID":"d912a668-16a5-466a-9c3e-883d18651b6e, 61b8f0ba-aada-4da4-959b-f314bb21818a","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-937","chapter","type-chapter","status-publish","hentry"],"part":926,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/937","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/users\/17"}],"version-history":[{"count":18,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/937\/revisions"}],"predecessor-version":[{"id":3466,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/937\/revisions\/3466"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/parts\/926"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapters\/937\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/media?parent=937"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/pressbooks\/v2\/chapter-type?post=937"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/contributor?post=937"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/wm-humanresourcesmgmt\/wp-json\/wp\/v2\/license?post=937"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}