Introduction to Employee Benefits

OBJECTIVES
- Explain the meaning of the term employee benefits.

- Explain the significance of employee benefits in terms of both employer cost and benefits provided to employees

- Identify the factors that have influenced the growth of group insurance and explain the significance of each factor.

- Identify the job opportunities available in the field of employee benefits.

In the early part of the century, very few employees received any compensation from their employers other than direct wages for time actually worked. Employees or their families were responsible for meeting the needs of old age, poor health, and death. Vacations, if allowed at all, were usually without pay.

The 1940s and 1950s witnessed the increasing use and acceptance of employee benefits as a form of compensation in addition to direct wages. During the last two decades, this growth has accelerated as new types of benefits have been added and existing benefits have expanded. Further, while employee benefits were once fairly standardized and free of government regulation, employers must now make more complex decisions regarding the benefits to be provided and the methods with which these benefits are funded.