Executive & Employee Benefits: Why They Matter
- October 21, 2024
Employee benefits play a crucial role in attracting job seekers, retaining skilled workers, and motivating a talented workforce. As an integral component of total compensation, these benefits go beyond basic salary to include health insurance, retirement benefits, paid leave, and various other perks.
Putting together an employee benefits package that reflects your values as a business is powerful. It’s a way of living the values and nurturing a company culture that reflects them. In today’s competitive job market, the strategic design and implementation of a comprehensive benefits package can set an employer apart, fostering employee satisfaction and loyalty.
The Importance of Employee Benefits
Employee benefits are items to offer employees that reward and recognize their hard work and contribution to the company. There are two types of offerings. These offerings can vary from statutory offerings of social security to family and medical leave. Fringe benefit or voluntary benefit offerings can include health and wellness, financial, work-life balance, and career development.
Employee benefits have a unique role to play in generating positive feelings and making employees feel seen and valued by their employer. Allowing employees to personalize their benefits can also lend itself to boosting morale. Knowing that their leaders are listening to them can strengthen community within the organization, which will contribute significantly to employee retention.
Taking Care of Your Key Executives
Executive benefit plans allow a company to tailor the benefits experience per individual, specifically on protecting top executives and their families. The focus is in setting protection for death or disability while employed, and ensuring that they are compensated with a retirement package that values the contribution they provided to the organization.
There are many advantages to offering executive benefits, including flexibility in developing benefit compensation strategies. They can be used to:
- Provide replacement income at retirement based on total compensation (not limited compensation)
- Attract, reward, and retain key executives
- Replace benefits lost due to IRS limits on qualified plans
- Provide benefits in addition to those under qualified plans
- Defer compensation to a future date, such as retirement
- Provide enhanced benefits in the event of an acquisition or other change of control
In today’s competitive job market, the goal for any corporation should be to provide a comprehensive benefit program that will foster a supportive and inclusive work environment that meets the needs of all employees.
DISCLOSURE
2024 Oppenheimer & Co. Inc. Transacts Business on All Principal Exchanges and Member SIPC.The information contained herein is general in nature, has been obtained from various sources believed to be reliable and is subject to changes in the Internal Revenue Code, as well as other areas of law. This material is for informational purposes only and should not be construed as a solicitation of any particular insurance product or insurance carrier. Insurance is sold through Oppenheimer Life Agency, Ltd. (OLA), an indirect wholly owned subsidiary of Oppenheimer Holdings. Before purchasing a policy of insurance, please review both the insurance carrier and the insurance policy carefully before investing. A strategic alliance exists between OLA and various outside providers whereby products and services may be utilized. Such providers may receive compensation as a result of the strategic alliance. However, the firms are completely independent of each other. This material is not a recommendation as defined in Regulation Best Interest adopted by the Securities and Exchange Commission. It is provided to you after you have received Form CRS, Regulation Best Interest disclosure and other materials. Oppenheimer & Co. Inc. Transacts Business on all Principal Exchanges and Member SIPC 7167016.1