Benefits 101: Demystifying Your Benefits Package What HR and Employees Should Know

Posted in December 19, 2025

Understanding your employee benefits package can be confusing but it doesn’t have to be. SHRM’s Benefits 101 guide breaks down the basics so HR teams and employees can make better decisions about benefits, elections and overall total rewards.

What “Benefits Package” Really Means

A benefits package is more than just health insurance. It includes all the non-wage perks and protections an employer offers, such as:

• Health, dental, and vision insurance 
• Retirement savings plans (401(k), pension options) 
• Paid time off and leave benefits 
• Disability and life insurance 
• Wellness programs and flexible work options

Most employees today value benefits as much as salary, and understanding what’s offered, how it works and how to use it can make a big difference in job satisfaction and retention.

Why Benefits Matter

An easy-to-understand Attract top talent by showing a competitive total rewards strategy.

• Retain employees longer by meeting their health, financial, and life needs.
• Boost productivity and morale when employees feel their well-being is supported.

Tips for Employees and HR Leaders

• Take time to review benefit details closely so you know what’s covered and what’s not. 
• Understand eligibility rules and enrollment deadlines. 
• Use employer-sponsored tools or sessions to ask questions and get clarity during open enrollment.

🔗 Read the full SHRM article:
https://www.shrm.org/topics-tools/news/benefits-101--demystifying-your-benefits-package--