November 11, 2024
Benefits Breakthrough: Turbocharging Your Compensation
Work for your perks – harness them wisely
- Challenge Type: Variety
- Challenge Level: Moderate
- Time Required: Ongoing
- Savings Potential: Up to 30% of employee income
Challenge Description
Did you know that less than 7% of employees fully utilize their employee benefits?
It’s a startling statistic that highlights a pervasive issue in the modern workforce. Employee benefits represent a significant portion of our total compensation – up to thirty percent (30%) of our compensation. Yet, many of us are leaving money on the table by failing to take full advantage of them.
While the majority of workers are familiar with retirement and healthcare benefits, it’s the plethora of additional perks and benefits that often go underutilized. From flexible spending accounts to wellness programs, tuition assistance to commuter benefits, these lesser-known benefits remain shrouded in mystery.
Given that no one taught us how to take advantage of our benefits and there was no class in school to educate us how to take advantage of the resources available to us. We’re expected to navigate this complex landscape on our own, with just the education we must discover on our own.
You must take a proactive approach and hack your employee benefits. You must challenge yourself to unlock the full potential of your compensation package and secure the perks that are owed to you. Commit yourself to exploring your benefits portal or book and learn about one benefit each month.
Employee Benefits by the Numbers
- Thirty percent (30%) of an employee's compensation is tied to benefits and non-compensated perks.
- Less than seven percent (7%) of employees fully utilize the benefits offered to them by their employers.
- One in three workers admit they don't understand their employee benefits and how to best take advantage of them.
- One in four employees do not participate or do not max out their 401(k) contibutions.
- On average, employees who max out their 401(k) contributions see a yearly increase in earnings of $1,336.
- Americans only use half of their paid time off (PTO) each year.
- Just twenty-three (23%) of employees use all their PTO each year.
- Eighty percent (80%) of employees do not open benefits information.
- One in four employees will become disabled before retirement.
Keys to Succcess
Start Here
Ask
Needs
Action
Start Here
You can’t afford not to learn about the benefits available to you.
Remember, your benefits package is more than just a list of perks – it’s a valuable resource that can help you achieve your financial and personal aspirations. By taking a proactive approach and learning about the benefits available to you, you’ll not only maximize your earnings but also enhance your overall well-being.
Education is key; you can’t use what you don’t understand. Take the time to familiarize yourself with the benefits offered by your employer, beyond just retirement and healthcare. Dive deep into the details, ask questions, and seek guidance from HR professionals or online resources.
Don’t try to learn it all at once. It takes time and patience to learn anything you are not familiar with. Stay persistent and dedicate yourself to learning it little by little.
Ask
Ask, ask, ask, and ask some more. Never be shy about asking questions. Beyond asking HR, talk with co-workers, talk friends and family members about what they know about their own benefits. Knowledge is power, and the more you know, the better equipped you’ll be to make informed decisions.
Ask yourself questions and search for the answers. Do you know the difference between a flexible spending account and a health savings account? What are the tax savings on each? What are the stipulations on tuition assistance? Do you know what wellness plans are offered?
Needs
It’s important to assess your individual needs and priorities. What are your long-term financial goals? Do you have a family to support? Are you planning for retirement? By understanding your unique circumstances, you can tailor your benefits package to meet your specific needs and maximize its value.
Whether it’s enrolling in a wellness program, taking advantage of commuter benefits, or utilizing tuition assistance for further education, don’t hesitate to seize the opportunities that are available to you.
Action
Once you’ve identified your priorities, it’s time to take action. Whether it’s enrolling in a healthcare plan, contributing to your 401(k), or taking advantage of flexible spending accounts, don’t procrastinate – seize the opportunity to optimize your benefits and secure your financial future.
Review and reassess your benefits on a regular basis. As your circumstances change, so too should your benefits strategy. By staying proactive and staying informed, you can ensure that you’re always making the most of your compensation package.
Pros
- Prevents leaving money on the table
- Could improve your quality of life
- May decrease short-term and long-term costs
- Some benefits will help lower your tax bill
Cons
- May require some time and effort
- Some benefits may increase short-term expenses.
Learn More:
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