Basic Employee Benefit Terms Every New Hire Should Know [Email Template]

Basic Employee Benefit Terms Every New Hire Should Know [Email Template]

Managing A Team
Some of the oldest Gen Zers graduated from high school or college during the pandemic and have just entered the workforce. This means your company could be their first place of full-time employment and the first time they come across benefits like PTO or 401(k). In the HR world, there is never a shortage of acronyms and jargon, so new hires, especially younger ones, may not be familiar with the benefits of their new full-time job. Employees who are aware of their benefits have increased company satisfaction; they also experience better financial, physical, and emotional well-being than peers who aren’t aware of their benefits. So, making an effort to introduce your Gen Z hires to their new benefits is well worth your time.  
Sample email for Gen Z new hires
Aloha [First Name] Welcome aboard! Our human resources (HR) team has developed a benefits package to help our employees thrive financially, physically, and emotionally. Please take a moment to review these benefits, and feel free to reach out if you have any questions about utilizing them!
FSA 
An FSA or a flexible spending account is a type of savings account that allows you to put aside pre-tax money from your paycheck to pay for certain out-of-pocket expenses like health care or parking. The best part is you're not paying taxes on this money. If you know that you have a medical procedure coming up in the next year that your insurance plan doesn't cover (e.g., LASIK), it might be wise to look into FSA as a tool to put aside the funds and save on your taxes. You generally must use the money in the FSA within the plan year, but you can sometimes carry over certain amounts of unused funds to the next year.
PTO 
PTO stands for paid time off. It is your vacation time! Make sure to provide advanced notice to your manager when you plan to use PTO. 
401 (k) 
While retirement might seem like it's eons away, it's never too early to start saving and investing. A 401(k) is a tax-deferred retirement saving and investing plan. One of the best parts about signing up for a 401(k) is you can set it to deduct contributions from your paychecks automatically. Automating investments helps to make sure you are contributing regularly and avoid the extra task of remembering to transfer funds. 
FMLA
The Family and Medical Leave Act (FMLA) provides you with up to 12 weeks of job-protected, unpaid leave during a 12-month period for specified family and medical reasons, including the birth of a child, dealing with a severe or chronic personal illness, or caring for an immediate family member with a serious or chronic illness. 
Workers' Comp
Accidents can happen on the job, so employers pay for workers' compensation insurance to ensure there are cash benefits or medical care for employees ill or injured as a direct result of their job. There are specific requirements and a review period to receive workers' compensation. Employers pay for this insurance, so you won't need to worry about contributing to this insurance. Just know that it's there, just in case. Mahalo, [Your Name] This article is part of our Generation Z toolkit – a series of articles and resources designed to help you onboard and retain your youngest employees. Members of Gen Z are born between 1997 and 2012. Their behaviors, attitudes, lifestyles and thoughts about work can be dramatically different from other generations. HR leaders must understand Gen Z’s unique preferences and differentiators to build and maintain a strong and diverse team.

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