Employers in the state of Florida must offer their workforce medical and voluntary benefits, along with incentives of an economic nature, like 401(k)s and IRAs, for example. They must also offer benefits of a non-financial nature to their employees that will help them achieve a balance between their work and personal life, such as flexible schedules, and ensure that the atmosphere and environment in which they work, is both comfortable and safe.
Retirement plans are an important aspect of the benefits package of any employee in Florida, no matter what role they fulfil; let’s take a closer look:
401(k) retirement plans
Through pre-tax payroll deductions by way of a 401(k) retirement plan, employees are able to contribute towards their retirement, with employers able to make matching contributions. IRAs offer a similar contribution option, but are established by the employee alone, with help from a bank or broker.
Pensions, which are defined benefit plans, offer a fixed amount to the employee upon their retirement, whereas a 401(k) which is a defined contribution plan, enables employees and their employers to invest money for the future. In recent decades in the U.S., pensions and other defined benefit plans have declined in usage and are now used only by governments.
Are retirement plans being offered by Florida employers?
Statistics show that as many as 82% of employers in Florida provide a benefits package that includes a 401(k), and as many as 77% of employees in the state take advantage of it when made available to them.
What about bonuses; are these offered by Florida employers?
As an incentive, bonuses are extremely popular, and they often come in the form of end-of-year payments which aren’t dependent on production, holiday payments, and employee referrals among others. How generous the bonuses are and how they are structured varies significantly and are often dependent on the role that an employee fulfils.
Are there any other benefits offered by employers in Florida?
Financial incentives and other perks are vital in helping to keep a workforce productive, for motivating individual employees within their roles, and for attracting and maintaining the very best employees. Employers in Florida must think long and hard about the different benefit options available to them, which can range from assistance with student loans, and wellness programs, to financial planning and making EAP (employee assistance programs) services available.
What benefits should you offer your employees as an employer in Florida?
To be an employer with a great reputation for taking care of your employees (and therefore one who is able to attract the best new hires when needed and retain them), you should carry out enough research to be able to offer them personalized benefits packages, or at the very least, benefits that they will appreciate according to their personal circumstances. For example, an employee who has just graduated college, will undoubtedly gain from a very different set of benefits and perks than a seasoned professional with a family. One employee might appreciate help with transportation or childcare, while others might enjoy a more flexible schedule.
Ultimately, an employer who is able to take care of their employees and show appreciation for them in the form of a variety of perks and benefits (whether they are obliged to offer them, or not), is always going to stand out in a crowded job market, and gain a positive reputation.
Many companies find it helpful to work with an outsourced payroll provider who can offer guidance related to employee benefits packages within the state of Florida, and handle all of the payments and tax requirements that come with them.