Types of Employee Benefits & Services

Types of Employee Benefits & Services

In addition to a salary, employees may receive a range of benefits and services from their employers. Benefits and services may vary depending on the employee's position or seniority, but most employees of a company will generally share the same basic benefits package. Benefits and services packages also differ among companies.

1.      Vacation

Most employee benefit packages include vacation time. These days off are usually paid, though some employers may offer unpaid vacation time as well. The amount of vacation time varies greatly and depends on the company's policy, but amounts typically range from five to 20 vacation days per year. Vacation time is usually accrued on a per month basis. The employee must schedule the use of vacation days in advance and gain approval from his immediate supervisor or human resources.

2.      Sick Days

Employees may receive paid or unpaid sick days as part of their employee benefit package. The amount of sick days an employee receives varies depending on company policy and seniority. The amount of sick time given to an employee typically ranges from five to 10 days, though employers may offer more or less time. Some companies may require a note from a physician that verifies illness before approving the use of a sick day.

3.      Retirement

An employer may offer pension or 401k savings plans for employees to save for retirement. An employer may set specific amount of money to be contributed to an employee's 401k on an incremental basis or the employer may offer a matching benefits program. Typically, this means the employer will match the amount of money an employee contributes to her 401k up to a certain amount. Some employers may offer a 401k savings account but without employer contributions.

4.      Health Spending Accounts

A health spending account or flexible spending account may be offered by the employer to help offset the cost of medical care not covered by health insurance. Qualifying expenses usually include co-payments for doctor's visits, prescription costs or over-the-counter medication. These programs may be a reimbursement model, where employees submit qualifying receipts for reimbursement, or the employee may receive a debit card that can only be used for medical expenses.

5.      Discounts

As part of the employee's benefit package, a company may offer discounts for in-house products or services. For example, retail companies often offer an employee discount for merchandise sold by the company. Other companies may also offer discounts for products and services offered by a network of outside companies. The employer may have relationship with companies that offer cell phone service, cable television, spa services or hotel accommodations and savings may be passed on to the employee.