What is a benefit?

A benefit is a form of indirect compensation designed to protect employees, reward performance, and promote goodwill. Mandatory benefits under federal and state law include social security, unemployment insurance, workers' compensation, medical leave, and family leave. The majority of employment-based benefits, particularly health insurance and retirement plans, are provided voluntarily. The government supports these voluntary benefits by granting favorable tax treatment for both you and your people.

Why is benefit program design important?

• The impact of double digit health-care cost increases, government legislation, and mounting lawsuits accusing employers of neglecting fiduciary duties have touched every organization at a magnitude beyond all predictors.

• Benefit costs now average 40% of total payroll.

• Communicating benefit value is key, because employees who understand their benefits needs make better decisions and have higher levels of benefits and job satisfaction.