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How to Understand Your Employee Benefits

Now that you’ve gotten the job offer, it’s time to review the employee benefits. 

If you’re on the hunt for a new job, there’s more to consider than just your responsibilities in your new position. In fact, one of the biggest things to consider when job hunting is your new employer’s benefits packages. 

According to the Bureau of Labor Statistics, 74% of civilian workers had access to workplace healthcare benefits.1 In the private sector, 70% had access to healthcare benefits and in the government sector, access to healthcare benefits were available to 89% of workers.2 Because of this, understanding employee benefits is a must—especially when you’re considering a new job offer. 

5 Types of Employee Benefits

1. Health Insurance

For many job seekers, health insurance can make or break a job offer. Many start-ups or smaller companies don’t always offer health benefits. If they do, you’ll probably see PPO (preferred provider organization), HMO (health maintenance organization) plans, or HDHP (high deductible health plans). 

PPO plans are flexible and allow you to see any healthcare provider. In addition, PPO plans do not require you to choose a primary healthcare provider and referrals are not required.3 HMO plans are less expensive but only allow you to see certain providers in your local network. HDHP plans are popular because you have the option to open up a health savings account (HSA). These accounts allow you to pay for medical services with tax-free money. 

2. Retirement Plans 

Thanks to the SECURE Act 2.0, saving for retirement just got a little easier. Companies are more able to offer things like student loan help, retirement benefits, and more. See our recent article on SECURE Act 2.0 to see what changed. 

But when it comes to retirement plans, most companies these days opt for a 401k over a pension plan. The most common benefit you’ll see is a 401k savings option with a company match up to 3%. That means your company will match whatever amount you put into that account up to 3%. It may not sound like a lot, but when it comes to retirement, every little bit counts! 

3. Flexible Spending Accounts 

Flexible spending accounts (FSA) are often associated with high deductible health plans (HDHP). When you have a high deductible health plan, an account like an FSA or HSA (health savings account) can really help offset medical costs. With an FSA or HSA, you determine how much goes into the account from each paycheck through direct deposit. Plus, it’s tax-free earnings which means you’re saving even more from your paychecks to go toward things like: medicine, eyecare, doctor’s appointments, and more. 

4. Paid Time Off

For many employees with traditional employee benefits, PTO is a big deal. American companies usually start employees with two weeks paid vacation and add more PTO benefits the longer you serve the company. Depending on the company, you might also be offered sick leave or personal days as well. 

Lately, the workforce is moving toward an unlimited PTO model where the vacation time isn’t capped but rather on the honor system. 

5. Stock Options

Stock options are a benefit that most start-ups like to offer their employees that join at the ground floor. Usually, these small companies are unable to offer much in the way of benefits, but they can offer stock in the company. As the company becomes more profitable, you do too.

How to Choose The Best Plan

Understanding employee benefits can feel overwhelming at times . . . but it doesn’t have to be. Ask a SageSpring Wealth Partner for help. We can help you understand your options for health insurance, life insurance, stock options, and retirement benefits so you can choose the best plan for you and your family. 

Talk to an advisor today!

Jeffrey Dobyns
Jeffrey T. Dobyns


President, SageSpring | Financial Advisor, RJFS 

Jeffrey T. Dobyns

President, SageSpring | Financial Advisor, RJFS

Jeff Dobyns is President and Founder of SageSpring Wealth Partners. Passionate about serving his clients, he strives to truly get to know them, understand their goals, and provide them with financial confidence before developing and executing ongoing, strategic financial plans. 

In order to meet the highest standards of professionalism and ethics in the industry, Jeff is a CERTIFIED FINANCIAL PLANNER™ professional, a Chartered Life Underwriter, a Chartered Financial Consultant, and a participant of the Dave Ramsey SmartVestor referral service program.

Jeff has held executive positions with financial planning firms for more than two decades. He served as VP of Investments of Lykins Financial Group CPAs before founding SageSpring in 2002. Jeff has been recognized for his unwavering commitment to his clients, and as a leader among Raymond James financial advisors, earning membership in Raymond James Chairman’s Council every year since 2008.

Jeff devotes considerable time and resources to a number of causes. He serves as Chairman of the Board of Men of Valor, a prison ministry and mentoring program. He is on the advisory board of The Signatry of Middle Tennessee, which works with families to increase their charitable giving to their favorite causes, as well as the advisory board for Halftime Institute of Nashville, an organization that coaches marketplace leaders to discern and engage in their life purpose. Jeff also serves on the board of Send Musicians to Prison, which shares hope, healing and restoration with the imprisoned through musicians & artists. He is a past board member of Porter’s Call, a Nashville charity that provides free counseling for musicians and their families, and the Martha O’Bryan Center, which empowers those in poverty to transform their lives through work, education, employment, and fellowship.

Jeff and his wife, Amy, are grateful to be raising their four children, Gracyn, Hunter, and twins Tanner and Logan at Christ Presbyterian Academy. Jeff enjoys being outdoors with his family- boating, hiking, skiing, hunting and fishing.

Ramsey Solution’s relationship and agreement is between SageSpring Wealth Partners only. Raymond James Financial Services, Inc. is not affiliated with the solicitor arrangement between Ramsey Solutions and SageSpring Wealth Partners.

Membership is based on prior fiscal year production. Re-qualification is required annually.  The ranking may not be representative of any one client’s experience, is not an endorsement, and is not indicative of an advisor’s future performance. No fee is paid in exchange for this award/rating.

Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, and CFP® (with plaque design) in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.