Your employee benefits package is a direct reflection of how you show up for your people in their day-to-day lives. When done right, your benefits package communicates to the team that you’ve thought about what they need and that you’re invested in making their career work for them. Plus, strong benefits directly support loyalty and retention, with studies finding that 78 percent of employees are likely to stay with their employer because of their benefits program.
In this guide, we’ll walk through the core components of a modern employee benefits package template, share employee benefits examples, and help you shape a strategy that works for both your team and your business.
<< Download our free employee benefits package template. >>
What is an employee benefits package?
An employee benefits package is a collection of non-wage perks offered beyond salary. These packages usually combine required benefits—like retirement contributions or statutory sick pay—with voluntary offerings your company chooses to include, such as mental health resources.
Effective benefits packages cover immediate needs like health insurance and paid time off, while supporting longer-term goals like saving for retirement or growing a family. That might mean offering financial leave or giving someone the time and budget to take a professional development course that will further their career.
Employee benefits package examples
Benefits packages can include everything from standard offerings to more modern perks that reflect how people live and work today. Exploring the full range helps you build a package that meets your team’s needs and supports how you hire and retain talent.
Traditional benefits
Traditional benefits form the backbone of most packages, addressing essential needs like healthcare, income protection, and family support. They’re often the baseline people look for when evaluating a job.
- Health insurance helps people manage both unexpected medical issues and routine care. It typically includes coverage for annual checkups, urgent care visits, hospital stays, and prescription medication, either through a fully covered plan or shared-cost model.
- Paid time off allows people to recharge, handle personal matters, or recover from illness without losing income. This benefit often includes vacation days, sick leave, parental leave, and personal time, contributing to better work-life balance and overall wellbeing.
- Dental insurance supports long-term oral health and prevents small issues from becoming major ones. It typically covers routine cleanings, exams, X-rays, fillings, and procedures like root canals or crowns.
- Vision insurance makes it easier for people to maintain eye health and comfort at work. It often covers annual eye exams, prescription glasses, contact lenses, and discounts on corrective procedures.
- Life insurance provides financial security for someone’s family in case of death. Most policies include a fixed payout or salary-based benefit to help cover living expenses, debts, or funeral costs.
- Short-term disability protects people who need time off due to illness, injury, or childbirth. It typically replaces a percentage of their salary during recovery for a predetermined time period.
- Workers’ compensation insurance offers financial and medical support to people who are injured on the job. It covers costs like medical bills, rehabilitation, and lost wages, while also protecting employers from legal liability.
- Unemployment insurance provides temporary income to eligible workers who lose their jobs through no fault of their own. It acts as a safety net while individuals seek new employment, helping to reduce financial stress during transitions.
Retirement and financial benefits
Financial wellness benefits help people build long-term security while addressing immediate financial concerns. These offerings recognize that financial stress impacts workplace performance and overall wellbeing.
Employer-sponsored retirement plans like 401(k)s help people save for their future while providing tax advantages. Many employers enhance these benefits through matching contributions that boost retirement savings and incentivize participation.
Tuition reimbursement programs and student loan assistance address educational costs by funding further education or managing existing student debt. These benefits particularly appeal to younger professionals who may carry significant educational debt.
In addition to pure monetary benefits, offering financial planning resources such as access to advisors and educational materials helps people make informed decisions about their finances. These resources can address diverse needs from budgeting to retirement planning, reducing financial stress.
Non-traditional employee paid benefits
These optional benefits offer added protection for unforeseen life events. Some employers offer them as opt-in extras so team members can choose what matters most.
- Accident insurance provides financial support after unexpected injuries. It typically covers expenses related to accidents like ER visits, ambulance rides, or follow-up treatments that may not be fully paid for by standard health insurance.
- Tax-advantaged accounts like Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) help people stretch their healthcare budget by using pre-tax income. They can be used for everything from prescriptions and copays to specialist visits and medical devices.
- Pet insurance supports team members with veterinary costs for their pets. Plans typically reimburse part of the cost for checkups, treatments, medications, or emergency care.
- Identity theft protection offers peace of mind by monitoring personal data and helping with recovery if someone’s identity is stolen. It often includes credit monitoring, fraud alerts, and access to recovery specialists.
- Pre-paid legal programs make it easier to access legal services when needed. These plans usually cover things like drafting wills, reviewing contracts, or dealing with landlord/tenant issues through a network of legal professionals.
- Critical illness insurance helps reduce the financial impact of serious health diagnoses like cancer, heart attack, or stroke. It usually offers a lump-sum payment if someone is diagnosed with one of these conditions.
- Hospital indemnity insurance helps cover the out-of-pocket costs associated with hospital stays. This may include daily hospital admission fees, surgeries, or extended inpatient care.
Trending benefits
Many organizations are expanding their benefits to reflect modern expectations and support people more holistically. These modern perks prioritize mental health, personal growth, and work-life integration.
For example, mental health benefits have become a priority as more companies recognize the importance of psychological wellbeing. Support can range from therapy coverage and mental health days to subscriptions for meditation apps, stress management tools, and access to virtual counseling.
Lifestyle spending accounts offer monthly or annual stipends that people can apply toward expenses that matter most to them. This might include childcare, career coaching, gym memberships, or even creative outlets like art classes to support their wellbeing in ways that align with their own priorities.
Employee benefits package template
This benefits package template helps your HR team communicate the full range of perks and protections your company offers. It’s designed to be clear, customizable, and easy to update as your policies evolve.
Whether you’re onboarding new team members or updating current professionals, this template serves as a comprehensive guide to your benefits offerings.
| Company name | |
| Effective date | |
| HR contact: | [Name, email, phone] |
| Introduction | At [company name], we believe supporting our team means more than just offering a paycheck. This benefits package outlines the resources, programs, and perks available to eligible employees to help you stay healthy, plan for the future, and manage life both inside and outside of work. |
| Who is eligible | Full-time employees: [Define eligibility criteria based on hours per week] Part-time employees: [List which benefits apply and on what basis] Temporary or contract workers: [State whether any benefits apply] |
| When benefits begin | [Outline the criteria for when the team member can access their benefits. For example: First day of the month following 30 days of employment] |
| Health and wellness benefits | |
| Medical insurance | Provider: [Insert provider name] Plan options: [List available plan types] Coverage: [Summarize services covered such as doctor visits, emergency care, prescriptions] Company pays: [Insert percentage or dollar amount of coverage you contribute] |
| Dental insurance | Provider: [Insert provider name] Coverage: [Summarize what’s included such as cleanings, fillings, orthodontics] Company pays: [Insert contribution amount or policy] |
| Vision insurance | Provider: [Insert provider name] Coverage: [Summarize what’s included, like eye exams, glasses, contacts] Company pays: [Insert contribution details] |
| Health Savings Account (HSA) | Eligibility: [Describe plan requirements] Company contribution: [Insert amount, if any] Employee contribution limit: [Insert amount] |
| Flexible Spending Account (FSA) | Types offered: [Medical, Dependent Care, etc.] Employee contribution limit: [Insert annual limit] |
| Mental health and wellness support | Resources available: [Describe offerings like counseling sessions, apps, etc] Access details: [How to use these services or who to contact] |
| Financial security benefits | |
| Retirement plan | Plan type: [Insert plan like 401(k), pension, etc] Eligibility: [Insert waiting period, if applicable] Company match: [Insert match amount and structure] Enrollment: [Describe how to enroll] |
| Life insurance | Basic policy: [Insert coverage amount] Additional coverage: [Describe options for supplemental plans] |
| Short-term disability insurance | Coverage: [Insert percentage of income and duration] Waiting period: [Insert number of days before benefits begin] |
| Long-term disability insurance | Coverage: [Insert percentage and timeframe] Eligibility: [Insert conditions or limitations] |
| Other optional insurance | Accident insurance: [Include if offered] Critical illness: [Include if offered] Legal assistance: [Include if offered] Identity protection: [Include if offered] Workers’ compensation insurance: [Include if offered] Unemployment insurance: [Include if offered] Family and medical leave: [Include if offered] |
| Enrollment and updates | |
| Enrollment deadline for new hires | [Insert number of days from start date] |
| Open enrollment period | [Insert date or month] |
| Life event changes | [Insert number of days to make updates following qualifying life events] |
| Paid time off and leave | |
| Paid holidays | List company-observed holidays: [Insert holiday name] [Insert holiday name] (Continue as needed) |
| Parental leave | Eligibility: [Describe who qualifies] Duration: [Insert number of paid/unpaid weeks] Additional info: [Include any required forms or coordination with other leave policies] |
| Additional leave | Bereavement leave: [Insert number of days] Jury duty: [Describe policy] Personal leave: [Insert terms, if offered] |
| Professional development | |
| Tuition reimbursement | Eligibility: [Insert who qualifies and what expenses are covered] Limit: [Insert max reimbursement amount per year or per course] Approval process: [Describe steps to request] |
| Training and certifications | Available programs: [List in-house or approved third-party options] Budget allocation: [Insert if there’s a training budget or stipend per employee] |
| Additional perks | |
| Flexible work options | Options available: [Insert remote, hybrid, or flexible scheduling policies] |
| Commuter benefits | Offered programs: [Describe public transport, rideshare, or parking support] Contribution method: [Insert pre-tax payroll deduction, etc] |
| Employee discounts | Available discounts: [Insert any retail, fitness, software, or company product discounts] |
| Milestone recognition | What’s included: [Insert gifts, shoutouts, or bonuses for anniversaries or achievements] |
| Wellness allowance or lifestyle accounts | Purpose: [Insert eligible use cases like gym, therapy, courses] Annual or monthly allowance: [Insert amount] |
| Acknowledgment | I, [employee name], acknowledge that I have received and reviewed the [company name] employee benefits package.
Employee signature: _________________________ |
<< Download a free employee benefits package template. >>
Benefits of a strong employee benefits package
The right mix of benefits can support key areas of employee experience and company success, by leading to:
- Improved employee engagement and motivation: 36 percent of team members have considered or left their jobs due to insufficient benefits. So, if you give people the time and space to take care of their families or log off without guilt, they’ll be more likely to stay involved with their work.
- Increased productivity: When someone doesn’t have to worry about whether they can afford a sick day or pick up their kid from daycare, they can get through the workday without constant mental drift. That kind of headspace leads to fewer delays and cleaner execution.
- Better job satisfaction and morale: 67 percent of team members consider employer-sponsored healthcare as the most important benefit. Creating an environment where your team doesn’t need to worry about unexpected medical emergencies can lead to a more positive environment where people can focus on doing great work without anxiety.
- Top talent attraction and retention: People don’t just compare salaries anymore. They compare flexibility, development, and how much a company invests in their growth. 73 percent of people say their employers must have competitive salaries or wages. If your benefits cover the things that matter most to people, they’ll see you as a place they can grow with, not just work for.
- Enhanced legal compliance: Solid benefits help you cover your bases, like pensions, paid leave, or health coverage. Keeping everything clearly documented and accessible lowers the risk of noncompliance and avoids costly surprises down the road.
How to create a comprehensive employee benefits package
Developing an effective benefits package requires a strategic approach that balances organizational goals with people’s needs. Follow these steps to create a benefits offering that supports your team while advancing your business objectives.
1. Define employee benefits package objectives
Start by defining the objectives you want your package to accomplish. Are you trying to compete for top talent? Support working parents? Improve retention for early-career team members? Pinpointing your goals early helps narrow down your ideas so you’re not investing in perks that don’t move the needle.
Then prioritize based on impact. What will your team mostly use? What gaps are causing friction right now?
Talk to your team, look at exit interviews, and check in with leadership. Once you know what your people need and what the business is trying to solve, you can build a package that makes sense for both.
2. Assess your budget and estimate costs
Start by mapping out what you currently spend—or could spend—on benefits, including things like healthcare, retirement, and voluntary perks. Calculate both direct costs like premiums or employer contributions and indirect costs such as administrative fees or the time spent managing vendors. Once you know your baseline, you can explore strategies to stretch your budget, such as:
- Cost-sharing models like high-deductible health plans with HSAs
- Voluntary benefits at group rates team members can opt into
- Annual audits to drop low-usage perks and reinvest in what matters
3. Determine which voluntary benefits to offer
Voluntary benefits let you offer more flexibility without taking on all the cost. These include options like pet insurance, legal support, or student loan assistance—extras that your team can opt into at a discounted rate.
Start by surveying your people. What would actually make a difference in their lives right now? A newer grad might want tuition repayment, while someone with a family may care more about child care support.
You don’t have to guess or offer everything. A smart approach is to offer a set budget or allowance people can apply to a menu of optional benefits to give everyone flexibility while keeping your costs predictable.
4. Evaluate benefits providers
Research benefits providers thoroughly to ensure they offer quality services that meet your people’s needs.
Compare your options based on:
- Their ability to provide the specific benefits you want to offer
- Ease of setup and use for both HR and team members
- Support responsiveness and availability
- Cost transparency
- Platform integrations
- Reputation with similar-sized companies
Consider working with benefits brokers or consultants who can leverage their expertise and market relationships to identify optimal providers. These professionals can help navigate complex benefit landscapes and negotiate favorable terms.
5. Roll out the benefits package
Once your benefits package is set, spend an equal amount of effort on the rollout. You want your team to see the value as opposed to just skimming the details.
Schedule your rollout strategically, considering business cycles, open enrollment periods, and organizational changes. Provide clear, jargon-free explanations of how each benefit works, what it covers, and how to access it. Most importantly, speak in plain language. Replace “cost-sharing arrangement” with “you’ll split this cost with the company.” Add real-life examples like “You can use this benefit if your child gets sick and you need a last-minute caregiver.”
Create opportunities for team members to ask questions and receive personalized guidance about their benefits choices. One-on-one support during enrollment periods helps people make informed decisions that maximize value.
6. Ensure compliance
Before launching your benefits package, confirm it meets all legal requirements based on where your team works. You can always consult a trusted broker or legal advisor to confirm which benefits are required and what documentation you’ll need to keep on file.
Identify which benefits are legally required in your location(s), including workers’ compensation insurance, unemployment insurance, and family leave provisions. In the US, the Office of Workers’ Compensation Programs administers four major disability compensation programs for federal employees and certain other groups. Requirements vary significantly across countries, states, and localities.
7. Review and update your benefits package regularly
Once your package is up and running, set a reminder to review it at least once a year. Look at both vendor contracts and how your people are using their benefits. What’s getting great feedback? What’s not being used? Did any life stages shift—like more new parents, more remote workers, or more people asking about wellness or financial support?
Run a quick survey or include questions in your performance reviews to gather feedback. Then use that input to adjust what you offer, swap out low-value perks, or add new options that support your team as they grow.
Benchmark your benefits against industry standards and competitors to ensure your offering remains competitive. Pay particular attention to benefits that impact recruitment and retention in your key talent segments.
Build a benefits package that supports your people
Creating an effective employee benefits package represents a significant opportunity to demonstrate your commitment to your people while advancing organizational goals. By thoughtfully designing benefits that address diverse needs across physical, mental, and financial wellbeing, you build a foundation for engagement, productivity, and retention.
Remember that the most successful benefits packages reflect both people’s priorities and organizational values. They evolve over time in response to changing needs and market conditions.
With strategic planning, clear communication, and regular evaluation, your benefits package can become a powerful tool for building a thriving workplace where people feel valued and supported. The result is a workplace where team members can bring their best selves to work, knowing their wellbeing matters beyond their job description.
<< Streamline your rollout with a free downloadable benefits package template. >>
Employee benefits package template FAQs
What are legally mandated employee benefits?
Legally mandated employee benefits are the essential protections that professionals are entitled to under local employment laws. While specific requirements vary depending on the jurisdiction, they generally include:
- Workers’ compensation insurance: Provides financial and medical support if someone is injured or becomes ill due to their job
- Unemployment insurance: Offers temporary income to individuals who lose their job through no fault of their own
- Family and medical leave: Protects team members’ right to take time off for personal or family health needs, including parental leave and caregiving responsibilities
Some jurisdictions may also require contributions to pension schemes, paid holidays, and healthcare.
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How much do employee benefits cost?
The cost of employee benefits varies depending on the size of the organization, its location, and the types of benefits provided. On average, benefits account for 20 to 40 percent of total payroll expenses.
The most significant cost is often health insurance, followed by contributions to retirement plans, wellness initiatives, and paid leave. While this may seem like a major investment, a well-rounded benefits package can increase engagement, boost retention, and support long-term organizational success.
What is a comprehensive benefits package?
A comprehensive benefits package goes beyond legal requirements to support every aspect of a professional’s wellbeing. It often includes a well-rounded mix of perks that support people in different areas of their lives—from financial wellbeing to mental health, family support, professional growth, and more.
A comprehensive package might include a combination of:
- Medical, dental, and vision coverage
- Retirement contributions or pension plans
- Paid parental leave and flexible time off
- Mental health support and wellness stipends
- Learning budgets or development programs
- Life and disability insurance
- Employee discounts or lifestyle perks