How do businesses benefit from offering voluntary benefits?
Voluntary benefits cost employers little to nothing in direct costs. This type of benefits offering is charged directly to the employees rather than being subsidized by the employer.
Another prime factor of this offering is their role in attracting and retaining top talent. As candidates search for jobs, they assess a number of things including their interest in the position, pay, and benefits available to them. For many employees, offering competitive benefits may be a make or break the decision of whether or not they choose to join or stay with your company.
In fact, 77% of workers say the benefits package is an important factor in their decision to accept or reject a job.
Another benefit that offering this type of service, it provides employers with is that as health care costs continue to rise, many companies are finding it difficult to provide high-level full coverage benefits to their employees. This allow businesses to provide their employees with healthcare coverage that doesn’t break the bank for themselves or their employees.
What are the benefits of voluntary benefits for employees?
Voluntary benefits offer employees flexibility in being able to choose the right plan for them. Regardless of age, need, existing health conditions, etc., voluntary benefits offer a flexible option for a variety of users.
They can also help bridge the gap between core medical plans offered by employers and additional medical needs. This option often aims to complement existing plans. They can also provide a safety net for employees with medical expenses that aren’t covered by their core plan.
Lastly, voluntary benefits provide an affordable option for employees as most benefits provided are deducted directly from employees’ paychecks. As a result, the dollars spent on health coverage are deducted pre-tax. Paying for health benefits pre-tax saves employees a significant amount of money paying for the benefits they need to afford their ongoing health coverage.
Overall, offering voluntary benefits packages to your employees is a great way to benefit both employees and employers. For questions or how to offer your employees voluntary benefits, reach out to one of our trusted brokers or to us directly.