Most employers offer not only a salary to their employees but a competitive benefits package. In a tight job market it is important that such benefits packages are well put together. With competition in compensation, the benefits that go along with a good salary are what will attract new hires and help retain current employees.
Benefits that employers provide can range from healthcare and vacation pay to cafeteria programs and commuter assistance. Such programs are typically at the discretion of the employer. By law employers must provide, and at least partially pay for, workers’ compensation unemployment compensation, Social Security, and Medicare. While the costs of benefits are rising, they are an integral part of most compensation plans, and employees have come to expect them when negotiating compensation.
There are a number of compliance issues employers must adhere to. One example is the Consolidated Omnibus Budget Reconciliation Act, which lets employees keep group healthcare coverage after being separate from the company for several months. Another law is the Health Insurance Portability and Accountability Act which deals with the employee’s privacy regarding health related information. The Employee Retirement Income Security Act is a pension law that makes the benefits an employer promises legally binding.
Employers must also be aware of specific taxes involved with benefits. Some benefits are taxable to the employee but others are the responsibility of the employer. Having a competitive benefits package will not only help you hire and retain employees it will make employees feel good about what they’re working for and feel as though their employer is looking out for their well being. Employee benefits make a compensation package much more than just a salary.
To find competitive benefit and salary data for your state or region, visit the Salary Center at Compensation.BLR.com. With BLR's accurate pay rate data on hundreds of jobs in all states and regions your company will be able to retain valuable workers, attract new employees, and improve profitability. You’ll also find reliable rate ranges, salary data, performance appraisal tool, and state regulatory analysis.
The Library has more current resources on pay rates like these:
Job Pricing: What are you worth?
Non-exempt employees compensation data
State and regional compensation pay rates
Annual employee benefit survey rates