Offering voluntary benefits is a win-win for you and your employees.
While voluntary benefits are offered by employers, they are typically 100% paid for by employees via their payroll deductions. You see, your business can get cheaper rates for these benefits than your employees would individually, which makes voluntary benefits a bargain for employees who want the coverage.
The types of voluntary benefits can be very broad, including dental, life, critical illness, disability, accident insurance, and more. Even products like travel insurance and mortgage protection insurance can be included, not to mention medical insurance for your employees’ pets, identity theft, and much more.
Advantages of voluntary benefits to employers
- Attract new employees
- Improve employee retention
- Provide the benefits that newer generations of employees most want
- Fill in the gaps between mostly employer-paid benefits such as health and disability insurance. For example, no- or low-deductible hospital indemnity plans can cover many out-of-pocket healthcare costs for inpatient and outpatient care
Advantages of voluntary benefits to employees
- Employees can choose the benefits they want, and not pay for benefits they may not need Some employers contribute part of the cost
- Employees can buy benefits offerings at reduced, group rates Another is convenience; employees can pay for voluntary benefits by payroll deduction, often using pre-tax money, thereby realizing savings