U.S. Employee Benefits | Accenture (2024)

FAQs

Do employee benefits really matter? ›

In many cases, offering an attractive salary alone isn't enough. PeopleKeep's 2024 Employee Benefits Survey found that 81% of employees said an employer's benefits package is an important factor in whether or not they accept a job. Your employee benefits package needs to be impressive to win over the right candidate.

Legally Mandated Benefits. Legally mandated benefits are employee benefits that are required by federal, state or local laws. These benefits can include minimum wage, overtime pay, unemployment insurance, FMLA, COBRA and workers' compensation. Employers must provide legally mandated benefits to all eligible employees.

With higher pay, you will have greater immediate purchasing power. On the other hand, better benefits may improve your lifestyle in ways that the additional purchasing power cannot compensate for.

Be sure to choose what's right for you

“Just because a job doesn't have benefits doesn't make it a bad financial decision,” Jordan says. “If your current job is making you unhappy, or if the opportunity to fulfill what you feel is your life's purpose comes around, the benefits may not matter as much.”

While the BLS data is subject to change, a good rule of thumb for employers is that an employee's benefits cost anywhere from 20-40% of their salary. Small, private organizations are likely to pay less, while large, public companies typically pay more.

Based on 2023 data from the U.S. Bureau of Labor Statistics (BLS), the average cost of employee benefits account for 29.4% of the average cost per private industry employee, or $12.06 per hour, per employee. The remaining 70.6%, or $28.97, goes toward wages, for a total cost of $41.03 per hour.

Health Insurance: This tends to be the most expensive for both employers and employees to pay for. In 2021, KFF found that to cover a family the average was over $16,000 and for an individual employee it was over $6,000.

The least popular benefits that employees will happily do without. Among the least desirable employee benefits are free office coffee, medical cash plans, and performance-related bonuses. This represents a widespread shift in people's values and expectations in relation to work.

What are the three R's of employee benefits? ›

By focusing on respect, recognition, and reward, businesses can cultivate a nurturing environment where employees feel valued and motivated.

Oregon scores the highest for workplace protections like paid family and medical leave. The state, which also placed first in our 2023 Best and Worst States for Working Women Index, is one of seven states to no longer have a tipped minimum wage policy.

A compensation package is a comprehensive summary of the various tangible and intangible benefits that employees receive in exchange for their work. This can include direct forms of payment such as base salaries and bonuses, as well as indirect benefits like health insurance, retirement plans, and other perks.

Paid time off (also known as PTO or personal time off) is compensated time away from work, provided by an employer to employees for them to use as they see fit. PTO is often measured in hours and classified for different types of absences like sickness, vacation time, and personal time.

Medicare and social security, unemployment insurance, workers' compensation, health insurance, and family and medical leave are all benefits that the federal government requires businesses to provide.

In summary, it is not necessary under federal laws to give equal benefits to all employees, but an employer should base benefit eligibility on tenure, full- or part-time status, exempt/nonexempt status, job group or even department. An employer must exercise due diligence to ensure its benefits are not discriminatory.

Medical benefits, retirement contributions, and tuition reimbursem*nt programs have the potential to make up 20-40% of your annual income. There are other things to consider, however, that may increase your annual expenses. Do you need to commute, or relocate to a more expensive area for the job?

By offering access to services and healthcare that employees may not have been able to access otherwise, employee health benefits allow employees to thrive at work and in their personal lives, regardless of their gender identity, race or socio-economic background.