Voluntary benefits are services or products offered by employers, often at discounted rates, as a perk of employment. Employers can provide benefits that employees want, while employees will have a variety of insurance options available in one convenient place and as the name implies, it is optional to purchase.
They generally allow employees to enroll in the benefits that are most important to them, are cost-efficient and portable, and contribute to an employee’s work-life balance. Because of this, voluntary benefits have become a core component of many companies’ benefits strategies.
There are four key characteristics to these offerings:
Employee-paid
Offered through an employer
Solicited and enrolled through a carrier or enrollment firm
Paid via automatic payroll deductions
Some common voluntary benefits include:
Disability income insurance
Accidental death and dismemberment insurance
Dental insurance
Vision insurance
Pet health insurance
Supplemental health insurance
Gym Memberships
Identity theft insurance
Travel Insurance
Car Insurance
Employee Assistance Programs
Legal Counseling
Homeowners’ Insurance
Mortgage Services
Student Loan Repayment Programs
Financial Counseling
Tuition Reimbursement
Employers should consider expanding their benefit offerings to include voluntary benefits because they are not only cost-efficient but also easy to implement, and employees are looking for them. Voluntary benefits appeal to both employee and employer needs.
Employer advantages include:
A cost-efficient way to supplement health care benefits
Increased expense control in the face of rising benefits costs
Improved employee morale
Employee advantages include:
Affordable premiums
Easy enrollment process
Freedom to choose benefits that suit their needs
Voluntary benefits may not be the right solution for all employers and employees. Employers should examine their current benefits package to determine which benefits are popular by surveying their employees. In addition, focus groups with employees can help determine which voluntary benefits they would prefer.
Even if they decline to participate, employees usually appreciate it when their employer offers voluntary benefits. They may use them as they cycle through different phases in their career and personal life.