An employer needs to be prepared to offer basic employee benefits in order to retain employees in the organization. By developing sound benefits strategies that fit the needs of the company and its staff, an employer can promote good work habits and financial practices.

1. Understanding the Employee Benefit Strategies
An employer needs to be prepared to offer basic employee benefits in order to retain
employees in the organization. By developing sound benefits strategies that fit the needs
of the company and its staff, an employer can promote good work habits and financial
practices. It is important for business owners to carefully consider their options and
create a package that is attractive and appealing to the employees. Letting staff
members know that employee benefits are on the way can have a positive impact on
employees, and it is essential to know what to keep in mind while planning the employee
benefit strategies.
• Choosing the benefits
It is necessary to decide on the benefits that your employee may be interested in, as
there are numerous possibilities that may have to be included in an employee benefit
package. Most packages usually include employee healthcare benefits, paid vacations
and paid leaves. To make a competitive employer, it is necessary to look at intangible
and unique benefits and include other benefits like retirement plans, or offering
telecommuting time, etc. It is essential to balance expenses when preparing an
employee benefits package. An entrepreneur needs to practice meticulous financial
planning in order to offer generous employee benefits. Once a benefit is offered, it
becomes awkward to take it away if there is a dip in the economy. Hence adequate care
must be taken while creating the right employee benefit package.
• Deciding on the staff eligible
Not everyone in an organization will be eligible for the same benefits package. In many
organizations, most of the extra benefits are earned rather than just given. In some
cases, employees will have waiting period of approximately three to six months before
the coverage begins. Other employee benefits as paid leave and paid vacation etc are
earned as rewards for loyal service to the company; the employee receives more paid
vacation, for example, the longer he works for the employer. This is advantageous as it
helps in employee retention while also while saving money on employee benefits.
• Taxation on employee benefits
When developing an employee benefits strategy another aspect that needs to be
considered is taxes. As some benefits are taxable and others are exempt, this is a
deciding factor for employers when they develop a benefits package. Paid vacations and
paid leave are voluntary employee benefits and are taxable. As the employer does not
receive any tax breaks on such benefits, they may not be that attractive to the
employer. On the other hand, benefits that can be used as deductions like health,
dental, vision insurance are exempted from tax, and can be more appealing to an
employer.
While considering an employee benefits strategy, it is always important to keep in mind
the needs of the employee before finally putting together an employee benefits package.
Although an employer can shape a worker's life by offering a generous package of

2. employee benefit services, it is best to develop a package that will be advantageous to
the employer as well as the employee.
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