Employee Benefits Packages That Work: What to Offer and Why

9 Employee Benefits Packages & How to Offer Them

These are the essentials most employees care about, playing a key role in keeping your team motivated and reducing churn:

• Health Benefits: Medical coverage to provide financial security for doctor visits, prescriptions, and hospital stays.
• Dental Insurance: Helps cover the cost of routine checkups, cleanings, and treatments.
• Vision Insurance: Covers eye exams and glasses.
• Paid Time Off PTO: PTO allows employees to rest and recharge, including vacation days, personal time, and mental health days.
• Retirement Benefits: 401(k)s and pensions help workers plan ahead. Employer matching makes them even more attractive.
• Flexible Work Arrangements: Remote work, hybrid setups, or flexible hours – essential for good work-life balance.
• Mental Health & Wellness Benefits: Counseling, wellness apps, gym memberships, or nutrition services support employee wellbeing.
• Education Benefits: Tuition reimbursement, student loan assistance, or professional development opportunities.

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Why Employee Benefits Matter

Gone are the days when benefits were limited to just healthcare or a 401(k). Today’s employees want options that support the full package of mental health, financial stability, and work-life balance. A well-structured benefits package can boost employee satisfaction, reduce turnover, and improve productivity.

More than 90% of employees say their job satisfaction is tied to their benefits. That’s a strong case for investing in the right offerings — not just to keep people happy, but to build a reputation as a great place to work.

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What Is Included in an Employee Benefits Package?

Most packages include a mix of traditional and modern benefits. By offering a blend of the two, employers can create a well-rounded package that supports employees' wellbeing and financial security.

Traditional Benefits:

• Health Insurance: Coverage for medical expenses, including hospitalization and outpatient care. Often includes dental and vision insurance as well.
• Retirement Plans: Plans such as 401(k) or pension schemes to help employees save for retirement. Many employers match employee contributions to retirement funds.
• Paid Time Off (PTO): Time off for vacations, holidays, and personal days. This benefit includes sick leave, vacation days, and personal days.
• Disability Insurance: Protection for employees in case of long term illness or injury that prevents them from working.

Modern Benefits:

• Wellness Programs: Health Related benefits that focus on mental and physical well being. This can include gym memberships, meditation programs, and access to wellness apps.
• Remote Work Stipends: Financial support for employees who work from home, covering expenses such as internet bills or office supplies.
• Mental Health Support: Counseling services or subscriptions to mental health platforms to support employees’ psychological well being.
• Financial Coaching: Support in managing finances, often through access to financial advisors or educational workshops.
• Child Care Assistance: Subsidized child care services for working parents.

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Examples of Employee Benefit Package Options

Understanding what’s in a typical benefits package helps you make smart choices to reward your team. Benefits vary by company, and what is considered statutory vs. non-statutory benefits differs between countries. Here’s a breakdown of the most common benefits and what they actually include.

Health and Wellness Benefits

Health benefits are often the most valuable part of any package. What’s offered — and how it works — depends on where you’re located.

Health Insurance

• In the U.S., employer sponsored health insurance typically covers doctor visits, hospital stays, and prescriptions. Some plans require you to stick to a network of providers (HMO), while others offer more flexibility at a higher cost (PPO).
• In countries with universal healthcare, like Canada or the U.K., employers may provide supplemental insurance for dental, vision, or private healthcare.
• High Deductible Health Plans (HDHPs) are common in the U.S., offering lower premiums but higher out of pocket costs before coverage kicks in.
•  Global options: Some employers offer international health plans for employees who travel frequently or work abroad.

Vision and Dental Plans

These may be bundled with health insurance or offered separately, covering routine checkups, corrective lenses, and dental procedures.

Mental Health and Wellness Programs

Many companies now provide:

• Employee Assistance Programs (EAPs) with free therapy sessions or crisis support.
• Wellness stipends for gym memberships, meditation apps, or fitness classes.
• Onsite counseling or virtual therapy options.

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Retirement and Financial Benefits

Helping employees build financial security makes you a more attractive employer — and reduces stress-related burnout. These benefits can vary widely by country, examples include:

•  401(k) and 403(b) Plans (U.S.): Employer Sponsored retirement accounts with pretax contributions and, often, employer matching.
• Pension Plans: Guaranteed retirement income, still common in public sector jobs and some European countries.
• Superannuation (Australia): Employers must contribute a portion of an employee’s salary into a retirement savings fund.
• Personal Pensions and Investment Plans: In countries without mandatory employer pensions, companies may offer financial advising or help setting up private retirement funds.
• Roth 401(k) (U.S.): Employees make post-tax contributions with tax-free withdrawals in retirement.

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Paid Leave and Work-Life Balance

Time off is a core benefit that directly impacts employee wellbeing and retention.

Paid Time Off (PTO) Policies

• U.S. approach: Many companies combine vacation, sick leave, and personal days into a general PTO bank.
• Europe and beyond: Employees often have four weeks or more of paid vacation, plus public holidays.
• Unlimited PTO: Some companies, particularly in tech, offer unlimited leave, trusting employees to manage their time responsibly.

Parental and Family Leave

• Maternity and paternity leave: Policies vary widely. Scandinavian countries offer extensive paid leave, while the U.S. has more limited options.
• Adoption and family care leave: Some employers offer additional time off for adoptive parents or those caring for elderly family members.

Sabbaticals and Career Breaks

• Some companies allow employees to take extended unpaid leave for personal growth, travel, or further education.

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Professional Development and Extra Perks

Beyond salary and core benefits, companies often offer additional perks to promote their reputation as a leading employer and build long-term loyalty. These can include:

Learning and Career Growth

• Tuition reimbursement for job related degrees or certifications.
• Access to online courses, workshops, or mentorship programs.
• Career coaching and leadership training.

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Other Benefits

• Hybrid or fully remote work schedules.
• Stock options or equity programs for employees in startups or publicly traded companies.
• Many employers offer extra fringe benefits to support employees' personal lives.
• Child Care assistance, such as onsite daycare or subsidies for working parents.

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Get An Instant View of Statutory Benefits

Use our free employee cost calculator to determine the true cost of employment, with a a complete view of what taxes, fees, benefits & more you can expect to pay.

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How to Design a Competitive Employee Benefits Package

A benefits package should reflect the unique needs of your team, not just industry standards. Here’s how to approach it:

1. Understand What Employees Want

Use surveys or one-on-one feedback to find out what people actually value – there’s no one size fits all that you can apply universally. Some employees may want mental health days, while others prioritize career development or relocation support. Let real feedback guide your strategy.

2. Balance Cost and Value

You don’t have to offer everything, just what matters most. Prioritize core benefits (health, retirement, PTO), then layer in those high-impact perks you know your team wants, like flexible work or wellness support. This can help optimize both value and cost.

3. Customize for Different Groups

Different demographics may require different benefits. For example, older employees might value retirement support more, while younger ones might lean toward education or remote work flexibility.

4. Be Clear About Eligibility

Make sure benefits are clearly defined and communicated, especially when some apply only to full-time employees.

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Compliance & Legal Considerations of Offering Employee Benefits

Offering employee benefits come with legal strings attached – as an employer, it’s key to brush up on all local regulations you need to follow to ensure compliance. For example, in the U.S., COBRA (Consolidated Omnibus Budget Reconciliation Act), ACA (Affordable Care Act), and the Family and Medical Leave Act FMLA) have regulations that impact employee benefits. Noncompliance can lead to costly penalties and damage to your company's reputation.

Many benefits, such as health insurance and retirement contributions, can be tax free for eligible employees, reducing their taxable income.

Common Compliance Mistakes to Avoid

• Not offering required benefits like sick leave or disability coverage can incur legal penalties.
• Misclassifying employees as contractors to avoid benefit obligations can lead to legal disputes.
• Missing tax reporting deadlines or filing errors can result in audits and fines.
• Offering benefits unequally across similar roles (which can violate discrimination laws).
• Not informing employees of their benefits or missing required notices (e.g., COBRA) can cause internal issues and risks churn.
• Failing to update policies based on new legislation, risking non-compliance.
• Poor recordkeeping can create major issues if you get audited.

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Offer Smarter Benefits, Globally With Playroll

As your team grows beyond borders, offering great benefits gets more complex — and more important. Whether your goal is to boost retention, improve employee wellbeing, or stay legally compliant in multiple countries, Playroll can help you get a competitive edge.

We simplify global benefits administration so your team can thrive, no matter where they are. Book a chat with our experts to find out how we can help scale and build your team, without the red tape.