Phillips & Gully (2019) state that there are three types of benefits: mandatory, customary, and optional. There are a multitude of legally mandated benefits afforded to employees. Depending upon where you live and work will dictate certain specific benefits that may not be applicable to someone in another geographic location. Federally, employees are entitled to social security benefits, Medicaid, and unemployment insurance for example. There are now further programs such as Paid Family Medical Leave, workers compensation, health insurance based upon number of employees, and paid sick leave. Additionally, there are jurisdictions with heavy unionized governments where these individuals are entitled to greater benefits simply for having a good government job. Optional benefits are where companies get to compete for employees based upon benefit that they choose to offer to their workforce. These types of optional benefits are more important than ever with how competitive the labor market is. Greater access to a better benefits packages also address the issue of attrition too. When I discuss the future with people my age, what happens in retirement, or rather when we can retire is a common theme. Folks who have government jobs or work in other unionized sectors, have some of the best retirement benefits available to workers. Unless I manage to make $100,000 per year here in Los Angeles for the foreseeable future, I will never come close to the retirement potential of someone who has a pension plan afforded to them. Social security income by the time I can even retire will not be sufficient to support myself. This leads me to another completely off topic, that according to the social security administration, I have put in my share of taxes to support what I will receive. This happened before I turned 40 this year. Everything I continue to pay is just extra that I will never see. I think having some way to mandate pension or 401k plans to those employees not eligible for them based upon the sector of work should be mandated. How that works is above my pay grade because I know it has to be paid somewhere, and the cost will be high.
Phillips, J. M., & Gully, S. M. (2019a). Human Resource Management. Chicago Business Press.