Voluntary benefits are benefits offered in addition to employees’ core compensation and benefits packages that allow for employee choice. The current state of the health insurance market has greatly increased the demand in order to compensate for the increasing health care costs. Many employers are expanding their voluntary benefits offering to help employees supplement their medical insurance plan and protect their financial security should he or she suffer a severe illness or injury. Companies can benefit in many ways from offering Voluntary Benefits. Most voluntary benefit offerings are funded by the employees and as such cost little or nothing to the company. Many employees highly value these benefits thus making voluntary benefit offerings a great recruitment tool. Attractive benefits packages also help build loyalty and retention, reducing turnover and associated costs. The employees benefit from reduced group rates, the convenience of payroll deductions and, in some cases pre-tax deductions. In addition, the employees have authority and autonomy to choose from a variety of options that provide the best benefit for them and their families.
Offering voluntary benefits is a great way to enhance your benefits package, differentiate from competitors and increase employee satisfaction—all with little impact on the companies budget. While employers may choose to offer numerous types of voluntary benefits that can deliver convenience and value for employees, many employees do not understand the advantages of these options or are unclear how they work. A successful voluntary benefits offering requires employee engagement and education. In addition to boosting participation in your voluntary benefits programs, providing this meaningful education can position you as a valuable source of knowledge and strengthen employee satisfaction and loyalty to your company.
There are a variety of voluntary benefit options that can be either insurance or non-insurance products. Some examples of common, traditional voluntary benefits include:
