Voluntary benefits are increasingly an important part of employee benefit packages. With employer benefits making up almost 1/3 of total compensation costs, organizations are turning to voluntary benefits as part of the total employee benefits package. The flexibility and wide range of options makes them attractive to employees. Plus, they can be tailored to meet the employee’s specific needs. Voluntary benefits are good for employers, too.
Here are five good reasons for employers to offer voluntary benefits as part of their total compensation package.
1. There is little or no cost to the employer.
Although employees pay for these benefits themselves, they are still a benefit because the employees receive lower group rates and a guarantee issue (everyone qualifies regardless of health).
2. Voluntary health benefits supplement high-deductible health care plans.
Employees can purchase voluntary health benefits such as critical illness and hospital indemnity plans. These can offset the costs of a hospitalization or major health event, bridging the high-deductible medical insurance gap.
3. Voluntary benefits attract and retain valuable employees.
During these times of low unemployment, competition to hire and keep the best employees is fierce. Voluntary benefits boost the overall benefits package with options that can help employers keep current employees happy and attract new ones. Choices and options enable employees to tailor a benefits package that meets their specific needs.
4. They provide income protection for employees who may not be able to afford or qualify for individual coverage.
For some employees, individual short and long term disability, life, and long term care insurance can be out of reach. Premiums on individual policies can be high. Additionally, some employees may have preexisting health conditions that prevent them from qualifying for individual income protection. Group disability, life, and long term care benefits are a guaranteed issue in many cases and come with lower group premiums. Your employees gain peace of mind knowing they are protected, and they appreciate that their employers offer benefits that protect their financial welfare.
5. Voluntary benefits offer employees choices.
One of the biggest pluses of voluntary benefits is just that, they’re optional. This choice allows employees to pick and choose the benefits that they want, rather than their employer picking for them. They give employees a level of autonomy in their overall benefits plan. Furthermore, your employees get to decide what combination of benefits works best for themselves and their families.
Voluntary Benefits add a lot of value for employees and employers. They allow employers to offer options to employees that fill the gaps in the organization’s employee benefits plan.
Popular voluntary benefits include:
- Term life insurance
- Dental insurance
- Cancer insurance
- Critical illness insurance
- Short and long-term disability insurance
- Accident insurance
Need help structuring a voluntary benefits plan for your organization? Healy Group’s team of highly experienced employee benefits advisors is ready to help you create the ideal benefits package for your company.
About the Author:
Healy Group Owner Chris Rowland has been a Risk Management Consultant in the community for over 20 years. Chris creates employee benefit strategies to meet the unique needs of their organizations and assist them to manage costs and eliminate uncertainty.