Discretionary benefits are benefits that you do not need to provide by law. The typical list of discretionary benefits includes sick leave, health insurance, maternity leave, pension plans, vacation leave, prescription drug insurance, and life insurance.
However, there are other types of discretionary benefits that many employers use to benefit both the employee and the company.
In order to attract and maintain employees, many companies offer these benefits to appeal to current and future employees. While some HR managers see them as an additional expense, others look at them as an investment in the company and the employees’ happiness. It is up to the HR department to decide which benefits are beneficial to the employees and which are not.
Discretionary Benefits Examples and Methodology
It is entirely up to HR professionals to decide which discretionary benefits their company would like to utilize and which would best benefit their employees. Here are common discretionary benefits examples.
Supplementary Products
Supplemental products are insurance policies that help protect your employees from expenses that insurance does not cover.
Supplemental benefits can include critical illness insurance, accident insurance, or insurance for a specified disease. These supplementary programs help give your employees financial security if something happens where there is a gap in their insurance coverage.
Common Benefits
While it seems that some of these benefits should be mandated by law, they are not. HR professionals have the option of including sick leave, health insurance, maternity leave, pension plans, vacation leave, prescription drug insurance, and life insurance as a part of their discretionary benefits.
Many employees find it a relief working for a company that offers these benefits, and their loyalty to your company will show if they are satisfied with what you offer them. A company that provides vacation leave is attractive to employees, as many don’t. Your employees will love that they can take a week off of work for a paid vacation.
A common benefit that used to be widely used was the USAA Movers Advantage Program. This program allowed military customers and their families to help save money when moving. As common as the USAA program was before it was discontinued, discretionary benefits should be just as common.
Wellness Programs
Allowing your employees to make their health a priority is extremely important. Wellness programs benefit your employees, but they also benefit your company.
These programs might make money over time and allow your employees to feel comfortable, happy, and more productive. Standard wellness programs include free gym passes, diet guidance, smoking cessation programs, and meditation sessions.
If your company is planning to relocate, many employees will be more willing to follow and relocate because of your benefits in their relocation packages, including wellness programs.
Pros of Discretionary Benefits
- Raise retention rates
- Increase morale
- Ultimately increase profits
- Allows employees to have a better work/life balance
Cons of Discretionary Benefits
- Administrative costs can add up fast, especially if your company offers a more extensive package
- Premiums can increase every year
Final Thoughts
Discretionary benefits are essential to your company and your employees. They address your employees’ medical concerns, wellness needs, and concerns regarding additional expenses. If your company is looking to relocate somebody as part of a new hire, ARC Relocation can help.
ARC Relocation can efficiently take the stress out of the move for your company and your employees. Contact us today to discuss your relocation needs!