| A well-thought-out benefits package understands | | | | either of these two plans, a Health |
| an employee's needs and also keeps in mind the | | | | Reimbursement Arrangement (HRA) or a Medical |
| employer's objectives. In prevailing market | | | | Reimbursement Plan (MRP). In HRAs, account |
| conditions, a competitive benefits package can | | | | balances can be rolled over from year to year if |
| serve as a nice recruitment tool and also act as | | | | the employer agrees to do so, thus helping |
| an effective tool for employee retention. | | | | employees to better manage their own |
| Basic benefit plans for employees include | | | | healthcare. Although equally flexible, MRPs are |
| healthcare, retirement, holiday pay and paid | | | | different from HRAs because they allow |
| vacation time. There are in-depth plans that cover | | | | employers to reimburse cost from a specific time |
| things like flexible spending and day care. | | | | period, whereas HRAs roll over and provide |
| Many employers are now offering "cafeteria | | | | benefits after an employee terminates |
| plans" in which employees can choose from a | | | | employment. |
| menu and level of benefits. In most cases, these | | | | Among retirement plans, a 401(k) plan allows |
| plans are funded by both the employees and the | | | | employees to give a portion of their earnings to a |
| employers, and benefit both of them. | | | | retirement plan on a pre-tax basis. The employer |
| Healthcare insurance covers reimbursement for a | | | | can choose to match contributions to boost |
| number of things: medical fees, eye examinations, | | | | employee participation. Giving employees a sense |
| dental work, prescription drugs, hospital services, | | | | of ownership, an Employee Stock Option Program |
| surgery, false teeth, x-rays, weight loss | | | | is a retirement plan that invests primarily in |
| programs, and so on. Such a package follows | | | | employer stock. |