Voluntary Benefits Are In Demand & On the Rise

Voluntary Benefits Are In Demand & On the Rise

Voluntary benefits are becoming more essential in the lives of employees, prompting companies to continue offering more robust packages as a way to attract and retain top talent and promote a more inclusive workplace. At the same time, employees are increasingly recognizing that their needs aren’t the same – for example, a 25-year-old single woman versus a 55-year-old married father of two – and they to be able to customize their options accordingly.

By providing voluntary benefits, companies can help ease the risks that exist when employees choose high-deductible health plans, while also providing the more personalized benefits that employees desire. At the same time, it’s important for companies to provide employees with a better understanding of exactly what type of voluntary benefits are offered to them, why they may want or need them, and how to enroll in them.

The most common voluntary benefits provided by respondents of the 2020 Employee Benefits Benchmark Report (report) include:

  • Whole or universal life insurance (66% providing)
  • Accident insurance (64% providing)
  • Individual disability beyond state requirements (56% providing)
  • Cancer or critical illness insurance (55% providing)

Yet these respondents report that only 35% of their employees enroll in these offerings. Since employees are spending income that would otherwise go toward their take-home pay, it’s likely that employees need more education on how the benefits can positively impact them. And, employees likely demand a more streamlined approach, utilizing software that allows them to study the benefits before they make selections. Consider investing in a robust benefits software, creating how-to videos or guides, or hosting virtual benefit seminars to educate employees on their options.

Looking to make informed, strategic benefits decisions based on your industry? Check out our latest employee benefits benchmark report.

While the report respondents offer more traditional voluntary benefits, there are some rising supplements to the traditional benefits package that companies are increasingly considering, including:

  • Financial Guidance – Many Americans say they’re one emergency away from financial ruin. To alleviate employee stress, companies can offer automated savings plans, financial literacy classes and professional development courses. In fact, 62% of our benchmark report respondents said they offer these types of programs, and 24% said they are interested in doing so. Some companies are also considering student loan forgiveness programs.
  • Pet Insurance – Younger generations are investing more in their pets, but their furry friend’s emergency, and even routine vet visits, can prove costly. Pet insurance is a unique and often inexpensive offering that can go a long way toward an employee’s financial and emotional wellbeing.
  • Identity Theft – There seems to be a data breach every single day, and those affected can spend hours on the phone trying to freeze accounts and recover their money. Identity theft programs can scan for personal security issues and help in the event of a breach. Just 12% of the report respondents said they offer this voluntary benefit, but we suspect that will continue to rise.

Are you curious as to what your competition is doing in other benefits areas, such as prescription management, dental and vision insurance? Find out here.

Voluntary Benefits Are In Demand & On the Risehttps://www.cbiz.com/Portals/0/BiReskinImages/Hero Images/hero_image_8.jpg?ver=2020-11-24-160618-640https://www.cbiz.com/Portals/0/liquidImages/WebReady/c4cc9a65e2c09e120e007d7af2a78236.jpgVoluntary benefits are becoming more essential in the lives of employees, prompting companies to continue offering more robust packages as a way to attract and retain top talent and promote a more inclusive workplace....2020-10-22T11:26:05-05:00

Voluntary benefits are becoming more essential in the lives of employees, prompting companies to continue offering more robust packages as a way to attract and retain top talent and promote a more inclusive workplace.

Employee Management