What are Voluntary Benefits
Voluntary benefits are benefits your employer offers you as a part of your employment. Oftentimes, these voluntary benefits include products like life insurance, accident insurance, critical-illness insurance, disability insurance, and legal services offered through an employer, often paid partially (or completely) by its employees through payroll deferral.
While there is no obligation for employees to enroll in voluntary benefits provided by an employer, voluntary benefits may provide employees with more affordable benefits.
1 Giving employees the option to choose the insurance coverage type and amount allows them to make the best decision for their family.
Voluntary benefits can be an asset for employers as well as employees, with voluntary benefits playing a huge role in employee retention, morale, and satisfaction.
Advantages of Voluntary Benefits
There are a number of advantages one can gain from enrolling in voluntary benefits. However, the two common reasons employees choose to enroll in voluntary benefits are as follows:
- Voluntary benefits may help relieve financial pressure. Since voluntary benefits can sometimes be cheaper than enrolling in insurance outside of your employer,1 it should come as no surprise that employees choose voluntary benefits for the sake of saving money. By saving a few dollars, employees may have more financial confidence.
- Voluntary benefits may give employees more options. Employers typically provide a list of insurance coverage options for employees to choose from. The array of options provided can give employees additional flexibility when choosing the quality and quantity of coverage they need, all while generally remaining quite affordable.
Advantages of Offering Voluntary Benefits to a Group
Voluntary benefits can be an asset for employers as well as employees, with voluntary benefits playing a huge role in employee retention, morale, and satisfaction. According to a One Medical Group survey, 59% of survey participants cited that their employer provided benefits were something very important to their satisfaction in the workplace.2
Satisfaction aside, employers with a strong voluntary benefits package may have an easier time recruiting and retaining top talent. 66% of workers interviewed confirmed that a strong benefits package is often times the largest determining factor when considering a job offer, and 61% stated they would be willing to accept a lower salary if a company offered a better voluntary benefits package than their competition.2
With a happier, more productive workforce at the helm, employers who offer a robust voluntary benefits package to a group may find they have an easier time meeting their bottom-line, reaching their goals, and cutting costs – all of which are more than enough reason to consider providing a strong voluntary benefits option to employees in the first place.
When 42% of employees consider leaving their current jobs because of inadequate benefits packages,2 employers have to ask themselves if they’re willing to risk losing such a high percentage of their workforce to such an easily remedied problem. Chances are, they’re not. The results speak for themselves, employers who offer a robust voluntary benefits package to their employees reap benefits such as increased employee satisfaction, productivity, and employee retention – something any employer would be gleeful to have. The bottom line: take care of your employees with voluntary benefits, and your employees will take care of you.