A Great Perk: Nine Ways to Make the Most of Your Employee Benefits

A Great Perk: Nine Ways to Get the Most from Your Employee Benefits

Employee benefits are more than a nice addition to your paycheck—they have the potential to make a substantial difference in your financial health, work-life balance, and job satisfaction. Yet most employees fail to use these benefits to their fullest advantage.

If you're passing up benefits, you may be passing up great chances to save, get healthier, and invest in your future. Here are nine tips for making the most of employee benefits:

1. Know What's Out There

Most companies provide a variety of benefits, from health insurance and retirement plans to wellness programs and tuition reimbursement. Begin by reading your employee handbook or benefits web page so you understand what's offered. If you're still not sure, check with HR.

Example:

One of my friends discovered her company offered tuition reimbursement, which allowed her to earn a master's degree without incurring debt. This perk not only enhanced her career but also increased her earning potential.

2. Max Out Retirement Contributions

If your company has a 401(k) match program, contribute enough to get the full match—it's free money. For instance, if your company matches 50% of your contributions up to 6% of your income, contribute at least 6% to receive the full benefit. Also, try to increase your contributions over the long term to increase your long-term savings.

Statistics:

According to a study by Vanguard, employees who contribute enough to their employer's 401(k) to receive the full company match have the potential to increase their retirement savings by an average of 30%.

3. Utilize Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs)

HSAs (for high-deductible medical plans) let you save pre-tax dollars for medical expenses with the additional twist that your saved dollars can be rolled over year after year. Your employer may even make a contribution to your HSA.

FSAs (Flexible Spending Accounts) cover medical expenses with pre-tax dollars but typically have a "use-it-or-lose-it" plan. Contribute carefully so that you do not lose money.

Example:

One employee used his HSA to cover unexpected medical expenses, which saved him hundreds of dollars in taxes and provided peace of mind during a time of need.

4. Leverage Wellness Programs

A few companies provide wellness incentives like membership in a health club, mental health counseling, smoking cessation classes, or even financial incentives for going through a series of health screenings. Not only could participation enhance your health, but it could save you money.

Personal Anecdote:

I became a member of my company's wellness program and received a discount on my gym membership. This not only motivated me to stay active but also reduced my expenses on fitness.

5. Take Advantage of Professional Development Opportunities

Employers often provide tuition assistance, certification reimbursements, or access to online learning platforms. If you’re looking to upskill or advance your career, take advantage of these programs to grow professionally without bearing the full cost.

Example:

A colleague used her company's certification reimbursement program to become a certified project manager, which led to a promotion and a significant salary increase.

6. Explore Discounts and Perks

Some employers partner with retailers, travel companies, or local companies to provide employee discounts on everything from electronics to vacations. Ask your employer if they provide these sorts of programs—you might be able to save on everyday expenses.

Example:

My company provides discounts on electronics, which allowed me to purchase a new laptop at a reduced price, saving hundreds of dollars.

7. Do Not Overlook the Less Common Benefits

In addition to the fundamentals, some organizations provide:

Commuter benefits (pre-tax public transportation passes)

Pet insurance

Legal services

Employee assistance programs (EAPs) for counseling and financial planning

Paid volunteer time

Example:

One of my friends utilized her company's paid volunteer time to serve a local charity, which benefited the community and provided her with a sense of purpose and fulfillment.

8. Utilize Employee Stock Purchase Plans (ESPPs)

Most companies provide ESPPs, which enable employees to buy company stock at a discounted price. This is a wonderful means of investing in your company's prosperity and possibly increasing your wealth.

Example:

One employee utilized her company's ESPP to purchase stock at a 15% discount. As time passed, the stock's value grew tremendously, offering her great financial profits.

9. Take Advantage of Childcare Benefits

Some employers offer childcare benefits, such as on-site childcare, subsidies, or agreements with local childcare providers. These benefits can significantly reduce the cost of childcare and provide working parents with peace of mind.

Example:

One of my coworkers utilized her company's childcare subsidy to enroll her child in a decent daycare, which allowed her to focus on her work, knowing that her child was properly cared for.

Final Thoughts

Your benefits are a portion of your total compensation—not remembering them is just like losing possibilities and cash. Remembering these benefits and taking advantage of them can open the gate to your monetary success, delight, and professional growth.