Benefits and Services: The Benefits Picture Today

Learning Objective 3

  • Define employee benefits.

“What are your benefits?” is the first thing many applicants ask. Benefits—indirect financial and nonfinancial payments that employees receive for continuing their employment with the company—are an important part of just about everyone’s compensation. 67 They include things like health and life insurance, pensions, time off with pay, and child-care assistance. Figure 11.2 summarizes benefits as a percentage of employee compensation.

A pie chart.

Figure 11.2 Relative Importance of Employer Benefits Costs for Employee Compensation, December 2016

Source:

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