Introduction:
In today’s competitive job market, companies are trying to stand out to attract and keep the best talent. Employee benefits are a key factor. A new study by LIMRA in 2022 shows that benefits matter to many employees. About 63% say their current benefits make them more likely to stay with their employer. For 4 in 10, benefits significantly increase their likelihood of staying in their current job. Having a more comprehensive benefits package makes employees want to stay. 61% of those with more than six benefits are satisfied with their package. In contrast, only 3 in 10 employees with one to three benefits feel the same way. This demonstrates the continued value of providing additional benefits above and beyond the fundamentals, like health and dental care. In this blog, we will discuss the significance of voluntary benefits and Supplemental/Discretionary Benefits, and their role in supporting employee well-being. We will also talk about voluntary benefit plans, solutions, and how they benefit employees.Â
Voluntary benefits are extra perks that employees can choose to have on top of the basic benefits of their job. Things like life insurance, extra dental or vision coverage, and even gym memberships can be examples of voluntary benefits. Usually, these benefits are given by a different company.
These extra options let employers offer more choices to their workers without spending a lot of money on them. With voluntary benefits, employees pay a bit, usually through their paychecks, and the employers cover the rest. It’s a way for everyone to get more out of their benefits without breaking the bank! Voluntary benefits are optional and can be customized to match the employees’ needs and lifestyle..
Supplemental/Discretionary Benefits: Tailoring Benefits to Individual Preferences
Discretionary benefits are the extra perks that employers aren’t required to give by law. Things like sick leave, health insurance, and time off for new parents are some examples. But many employers go the extra mile to offer benefits that help both the employee and the company. These days, when companies are looking to hire new people, the benefits they offer can be a big deal. It can be the deciding factor for someone choosing to work for one company over another.
Employers offer additional benefits apart from the necessary ones. These benefits vary by country. People working internationally might expect a well-rounded set of benefits that go above and beyond the basics. Supplemental benefits are like a bonus on top of the usual medical, retirement, and insurance coverage. They often cover the worker’s family too. Examples include extra health coverage, retirement contributions, and longer leave times.
The Significance of Voluntary Benefits for Employees:
Voluntary benefits provide employees with the freedom to choose benefits that best fit their individual needs. When employees feel responsible for their own well-being, they tend to be happier at work and create a positive environment. Employers can decide to provide extra health benefits like critical illness or hospital coverage. These perks help with big medical expenses and fill in gaps in high-deductible plans. Offering voluntary benefits makes the benefits package more appealing. Individual coverage for things like disability, life, or long-term care can be expensive and difficult for employees to afford.
Voluntary Benefits Plan:
To start a voluntary benefits program, first figure out what your business aims for. Then, see what your employees really want and need. Look at what other companies offer to attract and keep their employees. After that, get suggestions from the best benefit providers. Talk to your leadership team. Listen to their worries, suggest solutions, and let them be part of picking the provider.
Finally, launch the program and check in to make sure it’s working well. To make your employees happier with their job perks, find out exactly what they value in their rewards.
It’s important to know who makes up your workforce. That way, you can create a benefits plan that suits everyone. Lastly, take a look at what benefits your employees are using and how many sign up. This helps you make improvements in the future.
Voluntary Benefits Solutions:
Voluntary benefits are significant for both employers and employees. To make it work smoothly, it’s a good idea to get help from experts who know how to set it right. That’s where benefits solution agencies come in. They have the know-how to make your voluntary benefits plan a success.
In a voluntary benefits program, you get:
• Help in making a good plan for Voluntary Benefits
•Assistance in picking the right insurance company
•Support with customer service and handling claims
For employers, this means:
• You get to offer more benefits without spending extra money
• It’s a convenient way to give important benefits to employees who might not have the time or resources to get them on their own
• It boosts employee morale and shows that you care about them and their families’ well-being
• It’s a smart way to help cover the costs of setting up the benefits program
For employees, it means:
• You get extra coverage that fills in the gaps left by your major benefits and helps with high costs like deductibles and out-of-pocket expenses
• It provides financial security for you and your family in case of temporary disability, illness, or unfortunate events
• You can talk to professional Employee Benefit Counselors right at your workplace
• Paying for it is easy; it comes right out of your paycheck
• You have the flexibility to tailor your plan to suit your individual requirements.
Final Thoughts:
Changes in employees’ demographics and behaviors are altering the relationship between them and employers. Recent events and changes in the workforce have brought about a fresh employment dynamic. Employers must provide competitive benefits to attract talent.
More employers are interested in offering voluntary benefits, according to the Emerging Trends in Health Care Survey.. A staggering 94% of employers recognize the importance of voluntary benefits in their employee value proposition. Employers think voluntary benefits are an affordable way to provide employees with various benefits that match their personal needs.
Taking advantage of this growing landscape, employers are also expanding voluntary benefits. This is to address new trends and better cater to the diverse needs of their workforce, particularly those who have been affected by the pandemic. The changes led to an increase in benefits that protect employees from medical expenses, income loss, and personal harm.
For those seeking additional insights, I recommend exploring the guidebook titled ‘EMPLOYER’S Quick Guide to 21 VOLUNTARY BENEFITS: Your Employees Will LOVE!’ authored by Donna Joseph and Pete Tobiason. This guidebook has gained popularity among employers and earned appreciation from employees.