The Importance of Choosing the Right Employee Benefits Plan

employee benefits plansWhen searching for a job, many peoples’ eyes light up when they hear high salary numbers. But in reality, many salaries aren’t as high as they sound if they either aren’t offering an employee benefit plan, or the benefits provided are low quality. The long-term costs that employment benefits such as retirement investment options, health insurance and paid time off cover can be very difficult to replace, so before you jump at a hefty hourly rate, make sure to investigate the employee benefits plan that comes with it.

Insurance

Paying out of pocket for medical expenses can leave you with a lifetime of debt, especially if you develop serious health conditions. But just because your company offers health insurance as part of their employee benefits plan, it doesn’t automatically mean you will be saving a ton of money. That depends on what the employee insurance covers, how high the co-pays and deductibles are, and how much (if any) money will be coming out of your paycheck for it. The type of employee insurance that you should look for as part of your employee benefits plan also depends on what your medical needs are, your age, if you go for regular doctor’s visits and take multiple medications. But keep in mind that anything can change at any time, and that includes your health, so it is always beneficial to be on the safe side.  Dental insurance is a major plus as well since a minor dental procedure can costs thousands of dollars out of pocket.

Retirement

It can be difficult, especially for young people, to realize the importance of saving for retirement, but the reality is, the earlier you start, the better. Every penny you put towards retirement investment now will expand exponentially years from now, and that is likely to mean more financial security and an earlier retirement. Many companies offer 401Ks, IRAs and other types of retirement investment options part of their employee benefits plans that will set you up for a bright future in your golden years. Contributing even a small amount of money out of your paycheck per week to retirement funds will make a huge difference. Also, many companies will match up to a certain percentage of what you contribute to your retirement savings, which is another financial offering from the company in addition to what you make in salary. Some retirement investment options also allow you to take out loans against them if you need to, which is good to know just in case life circumstances ever require you to take advantage of this.

Paid Time Off

If taking a vacation means sacrificing salary, it is likely that many employees won’t do it, since so many of us rely on our paychecks to be a certain size every week in order to meet expenses. But a happier employee is one that has time off to look forward to, whether that means taking a trip, spending time with family or simply catching up on personal or household projects. As a result, many companies offer paid time off as part of their employee benefits plan.  This usually covers vacation time as well as sick and personal time.  It can relieve a lot of anxiety from an employee knowing that if they come down with a serious illness or a personal emergency, their paycheck will not be cut short.

Pay Raises

Before turning away a salary that is a little lower than you imagined, see if the company offers pay raises and employee performance reviews, and how often. If they do, it will give you extra incentive to work harder, and the satisfaction of being rewarded for your performance. Many companies offer this as part of their employee benefits plan, so they can give the employee a chance to prove themselves before they invest more in their salary.  No matter where you start out, the sky is the limit as far as where you end up.

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