The most common benefits include health insurance, dental and vision coverage, retirement plans (e.g., 401(k)), paid time off (PTO), life insurance, and disability insurance. Additional perks like wellness programs, flexible work arrangements, and tuition reimbursement are also becoming popular.

A PPO (Preferred Provider Organization) offers more flexibility in choosing healthcare providers and doesn’t require referrals to see specialists. An HMO (Health Maintenance Organization) typically requires selecting a primary care physician and getting referrals for specialists, but it often has lower premiums and out-of-pocket costs.

Some benefits, like Social Security, Medicare, workers’ compensation, and unemployment insurance, are legally required. Employers with 50+ full-time employees must also offer health insurance under the Affordable Care Act (ACA). Other benefits, like retirement plans or paid time off, are generally optional but highly valued by employees.

Offering benefits helps attract and retain top talent, improve employee satisfaction and productivity, and reduce turnover costs. It also enhances your company’s reputation and can provide tax advantages for the business. A comprehensive benefits package is a key investment in your workforce.