Why Should Employers Offer a Voluntary Benefits Plan?

Offering a variety of voluntary benefits is an important element of employee coverage for the employees, as well as the employer and the business as a whole. Why? Everyone wins when employees feel empowered and can get the care and coverage they need.

Choosing to add policies like life insurance and long-term disability is essential for employees to feel covered regardless of circumstance. This peace of mind (for themselves and their families) is an advantage for employees that goes beyond workplace satisfaction.

Voluntary benefits plans also allow employers to offer employees options that fill gaps in the company’s coverage plan at an exceptional cost-to-benefit ratio. Providing these choices demonstrates that the employer has a vested interest in the health and well-being of their workers, which has a reciprocal effect of increasing overall productivity and success.

Here are a few examples of widespread voluntary benefits:

• 401(K) Contributions. Saving for retirement is an essential aspect of a benefits plan, and 401(K) options allow employees to save and earn automatically with pretax income. This voluntary benefit is a joint investment in an employee’s future health and happiness.
• Disability Insurance. Disability insurance protects against a loss of income due to illness or injury. This type of insurance is valuable to everyone, not just workers in high-risk environments because the policy can cover physical accidents, heart attacks, or even cancer. When life throws your employees a curveball, they need to know they’ll be able to afford to take time away from work.
• Dental and Vision Insurance. This type of coverage is all about preventative care. Regular eye and dental exams (and coverage for basic essentials like mouth guards or glasses) are an essential step in promoting health and wellness. These policies allow for routine check-ups that prevent the surprise of a problem down the line.
• Pet Insurance. Employee benefits that include pet insurance can be surprisingly valuable to pet owners. Unexpected illnesses or injuries to a pet can be financially and emotionally devastating.  Knowing their pet will receive quality care whenever they need it will bring peace of mind to the employee and a greater sense of financial security.

The scope of coverage that voluntary benefits offer makes it possible for employers to meet the needs of their workers regardless of what happens in their lives. Furthermore, voluntary benefits are a relatively easy investment in employees’ health and future; these offerings can create a solid foundation of security and trust for both the worker and the business to thrive.

Similarly, comprehensive and customizable insurance packages are a strong draw for small businesses when attracting talent, in part because of the low cost. Offering prospective employees a broader array of choices to fill out their benefits package is a cost-effective way for small businesses to expand their appeal and compete for talent against larger companies.

Voluntary Benefits as a Whole

Voluntary benefits are an easy way for employers to boost their business’s productivity and keep their valuable employees safe, healthy, and happy. At no additional cost, offering these options fuels job satisfaction and the overall wellness of every employee, giving them the autonomy to choose the benefits that fit their individual lives and circumstances.

Employers who provide workers with these options make a statement that they care about their employees and about cultivating a company culture of respect and well-being.Looking for more exclusive content? Check out what’s trending on the Mployer Advisor blog, and read more about voluntary benefits here.

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