A guide to creating a top employee benefit package

A strong employee benefit package is one of the biggest factors for candidates choosing their next workplace, often ranking higher than job security and even personal fulfillment. For employers vying for candidates’ attention, offering standout benefits is critical to attracting and retaining top talent. Today, that means going beyond the basics. 

Discover the key elements of a comprehensive benefits package and how to design one that supports your team while strengthening your organization’s appeal.

What is an employee benefits package?

An employee benefits package includes all non-wage compensation a company provides to its workers, such as health coverage, wellness perks, and paid time off (PTO). Together, these benefits form an essential part of an employee’s total compensation.

Competitive benefits packages vary widely, with some focusing on core offerings like health insurance and retirement plans and others including additional perks such as gym memberships, mental health support, and relocation assistance.

Whatever the mix, the goal is the same: to enhance employee well-being. When businesses invest in health and happiness, they create a more satisfied and loyal workforce.

Types of employee benefits to include

To build a competitive package, people teams should consider the full range of options available. The best packages combine offerings across the following five categories.

Health insurance and wellness benefits

Health benefits are a core component of most benefits packages, providing a sense of security and peace of mind. Employees know they’re covered in case of illness or injury and that their families will be supported in the event of their death. Here are the essential health and wellness benefits to include:

• Medical coverage: Health insurance helps cover emergencies, procedures, and copays for routine medical and dental checkups. Many plans also subsidize medication expenses and vision care.
• Life insurance: Employer-provided life insurance assistance gives employees access to discounted or no-cost coverage that pays out to beneficiaries in the event of a worker’s death.
• Wellness programs: Employee wellness initiatives help workers maintain their physical and emotional health. These usually include benefits-in-kind (BIKs), like therapy access, gym memberships, and financial guidance.

Retirement plans and financial planning benefits 

Retirement and financial planning benefits give employees confidence in their long-term security. Team members can rest assured that, when they retire or want to make a major purchase, they have adequate savings. Common options include:

• 401(k)s: Traditional and Roth 401(k) plans let employees contribute to retirement savings with tax advantages. Many employers also offer contribution matching.
• FSAs and HSAs: Flexible spending accounts (FSAs) and health spending accounts (HSAs) allow employees to set aside pre-tax income to pay for eligible health expenses insurance doesn’t cover.
• Stock options: Some businesses let employees purchase company shares at a set price, known as an exercise price, meaning employees can benefit financially as the company grows.

Paid time off and leave

Time away from work is critical for overall well-being. Employers that offer generous PTO foster healthier, more productive teams. Common types of leave include: 

• Vacation time: Paid vacation typically totals several weeks per year. Some companies offer tenure-based increases as employees stay longer.
• Unlimited PTO: Employers that offer unlimited PTO allow employees to take time off as needed, provided they complete their work and continue to meet business goals. 
• Parental leave: Companies extend paid or unpaid parental leave to mothers, fathers, and guardians to care for a newborn or a newly adopted child.
• Sick leave: Paid or unpaid sick leave lets employees rest and recover from illness or injury.

Professional development opportunities

Professional growth benefits help employees gain new skills and advance their careers, strengthening both individual performance and company expertise. Development benefit package examples include:

• Tuition reimbursement: Employers cover part or all of the cost of an employee’s education, such as a certification or degree program that’s relevant to their role at the company.
• Training and learning resources: Companies may host in-house training sessions or provide access to online courses employees can complete at their own pace. This enables ongoing skill development and career progression. 

Lifestyle and fringe benefits 

Lifestyle and fringe benefits refer to unique perks that enhance employees’ quality of life and make balancing work and personal commitments easier. These extras often reflect a company’s culture and values, showing employees they’re supported beyond their core responsibilities. Examples of these benefits include:

• Remote or hybrid work options: Employees can work from home part- or full-time, giving them greater flexibility and autonomy in how they manage their schedules.
• Transportation benefits: Businesses may offer a company car, parking allowance, or transportation stipend to reduce commuting costs and simplify daily travel.
• Childcare support: Companies may provide on-site childcare facilities or off-site childcare benefits, helping working parents manage family responsibilities with less stress. 
• Travel opportunities: To reward strong performance or support professional development, some organizations cover the cost of business travel or provide leisure travel incentives.

Why a well-built employee benefits package is important

For employers offering extensive packages, attracting top talent isn’t the only advantage. Companies with comprehensive, thoughtfully designed benefits can expect several long-term rewards.

Better retention

When employees receive fair compensation, they’re more likely to stay. Giving workers financial security, professional development opportunities, and flexible perks signals that a company values its people and cares about their future. 

Improved employee engagement

Meeting employees’ needs builds engagement. Workers who feel cared for and secure, especially around their health and finances, tend to perform better and show higher job satisfaction. Engagement also correlates with lower turnover and absenteeism, plus fewer workplace accidents.

Stronger compliance management

In many regions, employers must offer certain statutory benefits, such as Social Security, Medicare, and unemployment insurance. Organizations operating globally face similar legal obligations in each market. Staying compliant prevents financial penalties and reputational harm. Partnering with an employer of record (EOR), like Oyster, can enable companies to manage compliance and benefits administration across borders.  

How to build a competitive employee benefits package: 4 steps

Creating the best employee benefits package possible means balancing ambition with practicality. Follow these steps to guide the process.

1. Evaluate workforce needs

A great benefits package starts with understanding your workforce. Survey employees or consult a benefits specialist to identify which perks matter most, whether that’s more flexibility or professional development opportunities. Once your plan is in place, continue gathering feedback to refine and improve it over time. 

2. Research competitors

Knowing what other employers offer can help you put together a truly competitive package. Review job postings and company websites to learn what’s standard in your industry. If competitors are providing attractive perks like hybrid work options or travel incentives, consider how you might match or exceed them.

3. Align with your budget

Not every company can afford to offer an extensive suite of benefits. Work with providers to explore different structures and price points, and aim for a package that supports employees while staying financially sustainable. Remember to include mandatory contributions, such as government insurance or retirement programs, in your spending calculations.

4. Communicate clearly

Clear communication around benefits should start early in the hiring process and continue to be reinforced during onboarding. Make sure HR and managers can confidently explain each offering, and keep employees informed about updates or new options. Transparency helps employees make the most of what’s available and maximizes the return on your investment.

Give your team the employee benefits they deserve with Oyster

Attracting and retaining expert talent means creating a benefits strategy that meets employees’ needs and evolves with their expectations. Regularly reviewing and updating your offerings ensures your organization stays competitive and prevents valuable team members from seeking opportunities elsewhere. 

Oyster’s Total Rewards program simplifies benefits management globally, helping businesses provide comprehensive, cost-effective packages while reducing administrative complexity. With guidance on local compliance, payroll, and perks, Oyster empowers companies to deliver an employee experience that supports long-term satisfaction and strengthens loyalty, no matter where your team is located.

Explore Oyster today and see how you can build an attractive, compliant benefits package.

About Oyster

Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.

Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.