In a time when workplace flexibility, mental health, and work-life balance are top of mind, the definition of a competitive benefits package is changing. Today’s employees are seeking employers that support their total well-being. That’s where supplemental benefits come in. These voluntary perks offer valuable coverage and support beyond standard health insurance. For employers, the question becomes: Are they worth the investment?
What Counts as a Supplemental Benefit?
Helpful Facts
- Employees stay longer when offered more benefits.
- Most supplemental benefits cost little or are employee-paid.
- Custom options increase engagement and satisfaction.
- Mental health and financial tools are now expected.
- Benefits reflect a company’s care for employee well-being.
Supplemental benefits (also called voluntary benefits) are optional add-ons to core insurance offerings. These benefits are typically customizable and often paid for by the employee, but employer subsidies or partial contributions are becoming more common.
Examples of popular supplemental benefits:
- Vision and dental plans
- Critical illness, accident, and hospital indemnity insurance
- Life and disability insurance
- Mental health programs and therapy access
- Financial wellness tools and budgeting apps
- Student loan repayment assistance
- Fertility and family planning support
- Pet insurance
- Legal services
- Tuition reimbursement programs
These options support employees in various areas of life—health, finances, family, and future planning.
Why Are Employers Prioritizing Supplemental Benefits?
Attracting and Retaining Talent
The talent war is real—especially in sectors like tech, finance, and healthcare. A robust and customizable benefits package signals to candidates that you care about their long-term well-being, not just their productivity.
- 69% of employees are more likely to stay with an employer that offers a wide range of benefits.
- Younger workers, especially Millennials and Gen Z, value customization and choice in their benefits.
Improving Employee Engagement and Productivity
Supplemental benefits reduce stress by helping employees navigate life’s challenges—from healthcare costs to caregiving to financial planning. This leads to:
- Fewer sick days
- Higher focus on the job
- Stronger loyalty to the company
When employees feel supported, they show up more fully.
Controlling Costs Without Cutting Value
Offering additional perks might seem like a big expense—but many supplemental benefits are cost-neutral or low-cost when employee-paid. Employers can offer a menu of options without a significant budget increase.
Some employers even save on healthcare premiums by improving overall employee health and reducing chronic conditions via wellness incentives and preventive care.
Evaluating the ROI of Supplemental Benefits
Here’s how to assess whether your supplemental benefits program is delivering value:
✅ Retention and Recruitment Metrics
Are you seeing higher offer acceptance rates or better retention among tenured staff after expanding your benefits?
✅ Utilization Rates
Which benefits are being used? Low engagement could signal poor communication or a mismatch with employee needs.
✅ Employee Satisfaction Scores
Do employee surveys show appreciation for the benefits package? Is there demand for new offerings like mental health support or financial planning?
✅ Cost-Benefit Analysis
Are the costs (administrative and otherwise) justified by reduced turnover, absenteeism, and higher productivity?
If the answers point toward positive outcomes, that’s your ROI.
Best Practices for Implementing a Supplemental Benefits Strategy
To make supplemental benefits work for your company—not just exist on paper—follow these steps:
1. Conduct an Employee Needs Assessment
Use anonymous surveys or HR roundtables to understand what your employees value most. You might discover that some want pet insurance, while others would prefer therapy app subscriptions or student loan support.
2. Offer a Personalized Benefits Marketplace
Partner with providers that offer a “pick-your-perks” approach. Customization makes employees feel empowered and increases engagement with benefits.
3. Communicate Often and Clearly
Benefits only work if employees know they exist and understand how to use them. Use plain language in multiple formats—emails, one-pagers, live Q&As, and explainer videos.
4. Review Regularly and Evolve with Needs
Track usage. Gather feedback. Be flexible. Employees’ needs change, and your benefits package should adapt accordingly.
Trends Shaping the Future of Supplemental Benefits
Staying ahead of the curve means watching how benefit offerings are evolving to meet the needs of a changing workforce.
Mental Health as a Core Offering
Access to therapy, mindfulness apps, and burnout prevention programs is now expected—not just appreciated. It’s important to budget to include mental health benefits in employee offerings.
Financial Wellness Tools
From student loan assistance to personalized budgeting apps and 401(k) coaching, employers are helping staff make smarter money moves. And most of the time, staff appreciates this coaching, as they don’t know how to invest in their 401ks to ensure their desired outcomes.
Family-Focused Benefits
Fertility support, caregiving stipends, parental leave enhancements, and childcare solutions are becoming more common. As more women participate in the workforce and parenting responsibilities become more equally shared, these benefits are becoming increasingly important.
Tech-Enabled Benefits Platforms
Digital platforms that centralize benefits info, allow easy enrollment, and provide AI-driven suggestions are streamlining HR processes.
The Verdict: Are Supplemental Benefits Worth It?
When designed with intention, supplemental benefits deliver long-term value—both human and financial. They increase employee happiness, reduce stress, and strengthen company culture. And in many cases, they cost less than traditional benefits while delivering big impact.
In a labor market where top candidates are interviewing you as much as you’re interviewing them, a smart, flexible benefits package is more than a nice-to-have—it’s a business imperative.
How Can Post Insurance Help?
Providing “Smarter Insurance Since 1954,” Post Insurance is a third-generation insurance agency with expertise in personal and commercial insurance of all types, including Personal Insurance, Disability Insurance, Group Medical, Life Insurance, Voluntary Benefits, Restaurant Insurance and more. Please call us at 800.262.9998 or use our online contact form and advise us of any questions or concerns. We are at your service.