The Advantages of Voluntary Worksite Benefits
Today’s workforce is more diverse than ever before. Workers have more personalized needs, and a growing number of employers are offering voluntary worksite benefits to accommodate them. Voluntary benefits are a win-win for both employees and employers. Employees receive easy access to programs that address their priorities and interests, and employers are able to provide these benefits for little to no additional cost.
Voluntary Benefits Overview
Voluntary worksite benefits are programs that employees can add to their benefits plans to address specific needs they may have. They are provided through the employer, and most or all of the fees are paid by the employee usually through a payroll deduction. Employers choose the voluntary programs they want to offer based largely on what their employees are interested in.
Examples of voluntary worksite benefits an employer may choose to offer include:
- Accident Insurance
- Critical Illness Insurance
- Cancer Insurance
- Hospital Indemnity Insurance
- Life and Disability Insurance
- Identity Theft Insurance
Voluntary worksite benefits are a cost-effective way for employers to enhance their overall benefits package. This, in turn, improves their ability to recruit and retain quality employees. Offering voluntary programs boosts morale in the workplace and promotes goodwill between employees and management by showing that the company cares about the needs of their workers. Voluntary benefits also encourage employees to take advantage of programs that can be beneficial to their health and well-being.For employers, the ability to offer a more comprehensive benefits package can help attract top talent and reduce employee turnover, which leads to a more productive workforce while reducing the costs of training new workers. This improves their bottom line and gives them a competitive edge over other companies in their industry who do not offer the same types of benefits.
Voluntary worksite benefits are typically very popular among employees. The first reason is convenience. An employee is able to choose from a menu of attractive benefits directly through their employers. These types of programs can be very difficult to obtain on their own, and by having them available at work, there is no need to shop around and try to find them from a carrier. The payroll deduction is also very convenient as the employee can “set it and forget it” and not have to worry about making the payments.
Another significant advantage for employees is cost. By offering the benefits through a group package, rates are typically lower than if an employee were to purchase them on their own. In addition, packages are usually more comprehensive and can often be tailored to the needs of the workforce. This helps relieve employee stress and gives them greater peace of mind knowing they have the essential coverages they need.
Unemployment rates have fallen in recent years and employers in many industries face a highly competitive labor market. Voluntary worksite benefits provide an affordable way for employers to set themselves apart and gain an advantage in attracting quality talent. The key is to understand the specific needs and interests of your employees, so you can offer the right package to keep them happy and productive.