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Benefits Basics

Benefits comprise the second half of the compensation equation (the first half is pay). While virtually every business has to offer some type of monetary compensation to employees, most benefits are optional.

Why offer benefits? Providing benefits to your employees also allows you to offer benefits to yourself, and contributions that you make for benefit premiums are often tax-deductible for your business. That's a powerful incentive in and of itself. However, if you need to attract employees with a special skill or talent, you're going to have to compete with other employers to get them, and that may mean you'll need to offer some benefits to succeed.

Issues to consider. As you contemplate benefits as a possible addition to your compensation package, consider the following issues:


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