Question

Principle type of benefits to include (example: deferred compensation match, health insurance, vacation and sick leave, etc.)

Answer 1

It is one of the components of the compensation and benefits system. The principal types of benefits include as deferred compensation match, health insurance, paid vacation, sick leave allowance, etc. These benefits protect the employees from financial hardship that might arise due to factors such as sickness, disability or unemployment. The benefits also provide retirement plans for the employees to help them survive when they are not employed. It also provides the employees with leave to take a break from work and rejuvenate themselves. Deferred compensation is also part of the benefits program for the company whereby part of the employees’ payment is deducted by the employer and this amount is held for disbursement later. For example, until the retirement of the employee, the amount might be withheld by the employer.

Benefits include mandated benefits as well which includes social security and unemployment insurance. The optional benefits include health insurance, retirement plans, leaves, life insurance, etc.

Recommendations – Benefits help to retain employees hence companies should not hesitate to provide benefits to motivate them for its success.