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EMPLOYEE
BENEFITS
Discussion
There are a multitude of benefits that an
NPC can offer employees. If competitive wages are a concern due to
limited financial resources, enhanced benefits may be a good way to
attract and retain loyal quality staff. Give employees a list of all
benefits provided by the NPC and include a calculation of actual dollar
amount of benefits given to each employee on an annual basis. When
drafting this section of the employee handbook, keep in mind the
following questions:
- How can you package your benefits plan
to be attractive to new employees and help retain your current
employees?
- Do you want your benefit plan to
provide greater rewards to those with more longevity in the
organization? How can you accomplish that purpose?
- If your benefit plan is subject to
ERISA (Employee Retirement Income Security Act of 1974), does your
policy provide the information necessary to comply with the law?
- Do you have ERISA plans under which
your employees will receive a summary plan booklet that more fully
describes your organization's benefits?
- Who is eligible to participate in your
benefit plans and when does coverage begin?
- Are there any underwriting
requirements for your insurance coverage benefits?
- Does your organization pay all or some
of the premiums?
- What happens to the coverage if the
employee terminates or retires?
- Are family members also eligible for
any of your benefits? How much is their contribution?
- Where can employees obtain additional
information on any of your benefit programs?
Be aware that benefits plans are
generally one of the most changeable areas in your handbook. For that
reason alone, it is always wise to describe your benefits in general
terms and to include a disclaimer to preserve your right to make changes
in the future.
Possible employee benefits include:
- Group health insurance, dental, vision
and prescription coverage
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Sick, vacation, personal,
holiday leave and other time off from workPension and retirement savings
plans - This policy describes a retirement plan with eligibility
criteria, dates and vesting period. Nonprofits may offer 401(k) plans
as well as 403(b) plans. If an organization has a retirement plan
governed by ERISA (which includes any retirement plan in which an
employee receives an employer contribution), the organization must
have a summary plan document and a summary plan description. The
summary plan description must be distributed to all employees
- Free or discounted parking or
transportation subsidies
- Life, accidental death and travel
insurance
- Short-term and long-term disability
insurance
- Training and education programs
- Membership in professional
organizations
- Wellness, smoking cessation, weight
loss programs
- Recreation, fitness centers
- Employee assistance program
- Legal and financial services
- Credit union, financial/retirement
planning
- Relocation benefits
- Flexible work environments and
schedules
- Casual dress
Specify the benefits to which an employee
is entitled in that individual’s employment letter or contract.
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