- Posted by Laura Martin
- On November 14, 2019
Pros for Employers
The first advantage that voluntary employee benefits provide for your company is that they improve your overall benefits package. This improvement, in turn, boosts your recruiting and retention. Voluntary benefits fill the gaps in coverage that primary health insurance leaves open, and provides more overall value to your employees.
Critical illness, for example, covers policyholders in case of a major illness that would otherwise leave them with an unfathomable medical bill. This coverage can be the difference between a benefits plan that fails an employee, and one they walk away feeling grateful they have.
Similarly, if your company offers quality voluntary benefits, it can be a deciding factor for recruits. In a recent survey from BenefitsPro, 62 percent of employees under 50 years old would not consider taking a job that doesn’t offer voluntary benefits.
A subpar voluntary benefits offering could drive potential rock star employees away from your business in the first place. If your company is unable to attract top-tier talent, your firm’s growth potential will be limited.
Additionally, the boost voluntary benefits can give your recruiting and retention rates, make them a potential money saver. The less turnover you have, the less your business has to spend recruiting, hiring, and training a replacement.
Another advantage for employers is that these benefits encourage preventative care for your employees. Preventative care helps your employees stay healthier, which decreases overall health care costs for your company. Those who do not have dental insurance, for example, are 2.5 times more likely to not visit the dentist. This number is logical, but the consequences of not seeing a dentist can include an increase in cardiovascular disease, diabetes, Alzheimer’s and more.
Pros for Employees
There are almost as many advantages of voluntary benefits for employees, as there are for employers. The first advantage these benefits offer employees is convenience. Voluntary coverage is paid through payroll deductions. These deductions make it easy for employees to pay for their benefits. Your employees do not have to worry about setting aside a portion of their paycheck or sending in a monthly payment.
Similarly, because voluntary benefits are paid for through payroll deductions, some can be paid for with pre-tax dollars. Using pre-tax money to pay for these benefits decreases an employees’ overall taxable income. A decrease in taxable income subsequently reduces an individual’s or family’s total tax burden.
Another advantage for employees is that voluntary benefits can relieve financial and emotional stress. Voluntary benefits such as life or disability insurance protect you, or your family, financially in case of a tragedy.
Because most employers can offer voluntary benefits at a group discount, employees save on their chosen benefits. Group rates allow employees to purchase voluntary benefits at a lower rate than they otherwise could individually.
The final advantage these benefits give your employees is a choice. One of the biggest pluses of voluntary benefits is just that, they are voluntary. This choice allows your staff to pick the benefits they want, rather than their employer picking for them.
Voluntary benefits give your employees a level of autonomy in their overall benefits plan. Your staff gets to decide what combination of benefits works the best for themselves and their families.