Employee benefits play a very important role in increasing employee satisfaction and corporate competitiveness. Below, we will introduce the standards and background of common employee benefits in American companies.
Background
The US welfare system began in the 1930s during the Great Depression. The origin of this system was that companies began to provide health insurance and pension plans for their employees in order to solve the labor shortage1. Nowadays, welfare benefits are an important part of corporate strategy in order to secure excellent human resources and increase employee satisfaction.
- Health Insurance
In the United States, there is no universal health insurance system, so health insurance provided by companies is very important. Many companies provide health insurance, dental insurance, and eye insurance for their employees and their families. It is common for companies to pay part or all of the insurance premiums1. - Pension plans
It is common for U.S. companies to offer defined contribution pension plans such as 401(k) plans. Employees put a portion of their salary into the pension plan, and the company matches a certain percentage of the contribution2. - Paid time off and sick leave
U.S. companies offer paid time off (PTO) and sick leave. PTO is generally around 10 days per year, and sick leave is often offered as well1. - Stock options
Many companies offer stock options to employees as an incentive for the company’s growth. This increases employees’ sense of participation in the company and has the effect of retaining talented people2. - Other employee benefits
- Company cars, computers, mobile phones: These may be provided if they are necessary for a particular job.
- Relocation assistance: Some companies will help with the cost of moving when you are transferred or newly hired.
- Flexible working hours: Flexible working hours are provided to support a good work-life balance.
- Gym membership assistance: Some companies will help with the cost of gym membership to promote health.