Voluntary Benefits Explained

According to a Voya Financial Study, nearly three-quarters (70%) of employed individuals who are eligible for benefits agree that they are more likely to work for an employer that offers employee-paid voluntary benefits.

Voluntary benefits are plans provided to employees at little to no cost to the employer.[1] They can help employees cover expenses that may not be paid for by other types of insurance. Often, employees can enroll in these benefits at lower rates than they would pay as individuals.  Some examples of voluntary benefits include:

-          Critical Illness

-          Hospital Indemnity

-          Short & Long-Term Disability

-          Voluntary Life Insurance

-          Dental

-          Vision

There are multiple advantages to adding these programs. Well-designed, targeted voluntary benefits can help companies:

-          attract and retain talent

-          cover gaps in group health insurance coverage

-          tailor the benefits specific to the employee’s situation

2 Tips when Designing a Voluntary Benefits Package

1.       Understand Demographics

Before offering or expanding upon voluntary benefits, you must understand what your employees want. Utilize pulse surveys or different technologies that gather real-time feedback. If you have a younger female population, short-term disability will be important because of pregnancies. If you offer a high deductible health plan, then supplementing it with a critical illness or hospital indemnity policy could be beneficial. Use data to ensure that you’re offering the right benefits to your employees.

2.       Communicate Effectively

If you don’t communicate the voluntary benefits effectively, employees who potentially need certain insurances won’t enroll. Another Voya Financial Study revealed that more than half (54%) of millennials don't understand their benefits selections. By adding videos or interactive guides, companies can utilize more than one medium of communication. It’s critical that both the broker and employer help guide and teach employees about the entire benefits program, not just health insurance.

Overall, voluntary benefits can enhance and strengthen your company’s benefits package. If you have any further questions, feel free to email me at Christian@benxconsulting.com

[1] https://www.guardianlife.com/voluntary-benefits/what-they-are