5 Southwest Airlines Employee Benefits That Attract Employees

Southwest Airlines is known for its low-cost, customer-friendly flights and top-notch service. But what may be less well-known is the company’s impressive employee benefits program.

Employee benefits are what can truly make a company great to work for and can help to attract and retain talent. Offering perks and benefits that employees want and need show that you care about your workforce and their wellbeing. 

Southwest Airlines understands that happy and healthy employees are critical to a successful business, so they offer various benefits that attract top talent.

Let’s explore the various benefits, perks, and rewards that this airline offers to help you understand why it is a sought-after employer.

5 Popular Southwest Airlines Employee Benefits

Here are some of the most popular employee benefits offered by Southwest Airlines.

1. Travel Privileges

One of the best perks for employees Southwest Airlines offers its staff is unlimited travel privileges. Employees, along with their eligible dependents, enjoy free flights on Southwest Airlines. 

Eligibility extends to the spouse or committed/registered partner, dependent children under 19 years old, or up to 24 years old if they are full-time students and parents.

This benefit isn’t just about free flights. It’s about experiences, opportunities, and work-life balance. It promotes employee satisfaction and loyalty, making the company a desirable workplace.

But the benefits don’t stop at free flights. Southwest Airlines’ employees also get pass agreements from other airlines and discounts with rental car companies, hotels, theme parks, and more. This means employees can enjoy a broader range of cost-effective travel experiences, further enhancing their work-life balance.

2. Gratitude (SWAG) Points

Southwest Airlines places high importance on employee recognition. The cornerstone of their culture is embodied in their SWAG platform. 

This unique system makes it easy for team members to express gratitude. Employees can quickly send notes of appreciation or nominate peers for awards. These awards are not merely symbolic. They come with tangible SWAG Points.

Employees can redeem these SWAG points for various rewards that play an essential role in employee motivation and retention. Employees can use their SWAG Points to shop for merchandise, gift cards, and unique experiences.

This unique recognition system enhances employee engagement, instills a sense of accomplishment, and fosters a positive work culture. With such an innovative reward system, Southwest Airlines attracts and retains high-performing talent.

3. Financial Rewards

This airline provides its employees with several financial benefits, including:

401(k) Plan

Southwest Airlines strongly supports the financial wellness of its employees by offering a robust 401(k) Plan. Employees can contribute pre-tax or Roth after-tax dollars to secure their retirement. 

The real draw, however, is Southwest’s generous matching program. The company matches employee contributions dollar-for-dollar up to 9.3% of their eligible earnings. This not only promotes a culture of savings but also demonstrates the company’s investment in their employees’ future.

Related: Microsoft's 401(k) Plan

ProfitSharing Plan

This company exhibits its commitment to shared prosperity through the ProfitSharing Plan. Employees are rewarded for contributing to the airline’s profitability, creating a sense of ownership and alignment with the company’s success. 

The company’s pioneering approach in introducing a ProfitSharing Plan in the airline industry reflects its progressive thinking and commitment to employee welfare.

Related: Coca-Cola's Profit Sharing Program

Employee Stock Purchase Plan

The Employee Stock Purchase Plan at Southwest allows employees to buy company common stock at a 10% discount. 

This is an appealing financial benefit for employees who, after six months of continuous service, can conveniently opt for payroll deductions to acquire the shares. The plan empowers employees to become stakeholders in the company, further nurturing loyalty and commitment to the organization’s vision.

4. Health Insurance & Family Benefits

Eligible employees enjoy a plethora of health insurance and family care benefits, including:

Medical Coverage

Southwest Airlines provides a variety of medical coverage plans. These range from Preferred Provider Organizations (PPOs) to High Deductible Health Plans, all designed to meet diverse employee needs. 

By covering a significant percentage of the cost, Southwest ensures that employees and their families can afford quality medical and prescription drug coverage.

Related: Meta's Amazing Healthcare

Vision Coverage

To help employees maintain good eye health, Southwest offers vision coverage. This plan covers comprehensive eye exams and provides allowances for contact lenses or lenses and frames, making eye care affordable for employees and their families.

Dental Coverage

The company also offers dental coverage options, which include preventive, basic, major, and orthodontic care, ensuring comprehensive dental health care for employees and their dependents.

Flexible Spending Accounts

Southwest Airlines offers flexible spending accounts that allow employees to make tax-free contributions towards healthcare and dependent childcare. This benefit helps employees maximize their income by reducing taxable earnings.

Health Savings Account (HSA)

Southwest Airlines provides a Health Savings Account (HSA) option for employees enrolled in a high-deductible plan. This account can be used for eligible healthcare expenses and comes with a company-paid concierge service.

Basic Life Insurance

All employees receive basic term life insurance at no cost, which provides a safety net for their families. Furthermore, employees who enroll in a BenefitsPlus program receive life insurance up to a maximum of $1 million and can opt for additional life insurance for their spouse/partner and children.

Related: Hilton's Insurance Benefits

5. Charitable Giving And Volunteering

Southwest Airlines is deeply committed to giving back to the communities in which it operates. 

The airline promotes local giving through various social responsibility programs and encourages employees to volunteer their time and skills. This culture of philanthropy not only strengthens community ties but also fosters a sense of pride and team spirit among Southwest’s employees.

Final Thoughts

Southwest Airlines offers some of the best employee benefits and perks. These benefits range from substantial financial rewards and travel privileges to adequate medical cover and a charitable spirit. 

It’s these benefits that attract top talent and help the company retain it. Today, it’s crucial for any company wishing to remain competitive to implement similar benefits.

Implementing a similar suite of perks and benefits can significantly enhance your company’s ability to attract and retain top talent. They provide a competitive edge in the job market but also contribute to the overall well-being and satisfaction of employees. To kickstart your perks and benefits, try PerkUp today.