Voluntary benefits, also called supplemental insurance or employee-paid benefits, are offered by the employers through the workplace Employees may choose to purchase them in addition to the core employee benefits they receive as part of a benefits package. These can include:
Personal Travel Insurance
Critical Illness Insurance
Identity Theft Protection
Student Loan Consolidation
Labor demographics are changing, causing a major change in how employers interact with their employees. Due to the mass exodus of employees from the workforce, employers are offering significant pay increases to attract and retain talent.
According to our research, year-to-date salary increases in the United States have exceeded 7%, compared to a historical norm of 3%. Here are a few of the workplace trends we are seeing. (Source: SHRM)
Provides added protection and services at a small additional financial obligation.
Gives employees the ability to customize their protection
These benefits enrich the current core benefits with more personalized options.
Whether offering traditional benefits such as life insurance or more innovative ones (such as financial wellness, meditation, or concierge services), an increasing number of employers view voluntary benefits as optional perks.
These are typically paid for by employees but available at discounted group rates through their employers or employer-paid noncore benefits.
Employers focusing on providing holistic coverage that complements their overall benefits strategy can be attributed in part to the alignment of voluntary benefits with core offers.
Voluntary Benefits Can Provide Employees with Peace of Mind Though:
Providing their staff effective options. They are increasing meaningful choices which results in increased benefit satisfaction, and increased overall employee engagement.
Providing for the financial security of employees. A well-designed voluntary benefits plan can assist employees in preserving their financial security.
Employers can consider the different demands of their employees. Whether considering generational, cultural, or economic diversity. Offering voluntary benefits helps employers meet these goals.
How To Design Your Approach
Determine your employee's needs, interests, and requirements.
Consider interviewing employees, distributing questionnaires, and conducting surveys.
Conduct a review of the current benefits package and compare it to the plan offered by a rival.
Analyze the demographics of your employees.
Work to meet the demands of younger workers and older workers.
Create A Plan
Analyze the cost of each service to ensure that you stay within your budget.
Assist employees in determining cost-cutting opportunities.
Determiner which benefits are the most important or beneficial?
Determine the amount of employee and employer contributions, if necessary.
Communicate With Employees
Exceed the legal requirements for compliance with and disclosure of plan summary communications
Set aside time to educate personnel about the situation they are about to enter.
Ask for support from employees.
One advantage of voluntary benefits is that employees can purchase benefits at discounted group rates. Another advantage is convenience; employees can pay for voluntary benefits through payroll deduction, frequently with pre-tax dollars, resulting in savings.
As organizations analyze their talent requirements for their new ways of working, it is prudent to consider benefit options that will be most appealing to both prospective candidates and existing employees.
Leap | Carpenter | Kemps Insurance Agency Can Help
Leap l Carpenter l Kemps Insurance agents and consultants have helped many businesses establish, plan, and implement successful risk management and insurance strategies. Contact us today for more information on the advantages of risk management consulting services or to schedule a consultation with a professional expert.
Since 2005, Donna has been a Life & Health Benefits Advisor with Leap | Carpenter | Kemps Insurance Agency, where she uses her three decades of insurance experience and knowledge to ensure her clients get the best policies for their budget.
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