What are Voluntary Benefits?
Attracting and retaining employees is one of the key components of running a successful company. A strong compensation and benefits program is essential to maintaining a happy and productive workforce. As lean compensation and benefits budgets force employers to cut back on their core benefits (such as medical, dental, term life, etc.), voluntary benefits can provide significant value to employee benefits with no employer cost outlay. There are a broad range of programs that may be considered "voluntary benefits." Some common programs include:
- Group discounted insurance plans: Such as auto & home, pet, vision, long term care, etc.
- Supplemental insurance plans: Such as critical illness, accident, universal/whole life, cancer, etc. that can complement your core benefit offerings
- Other discounted "group" programs: Such as identity theft protection, computer purchase, legal services, etc.
- Discounted consumer products and services: Some comprehensive voluntary benefit platforms will incorporate a wide range of discounted product providers
Why are voluntary benefits valuable to employees?
- Favorable rates/pricing: Employees are able to access insurance plans and products with better pricing than they could get outside the workplace, helping to stretch their paychecks.
- More favorable underwriting for insurance programs: Many voluntary insurance plans are offered on a "guaranteed issue" basis, ensuring that all employees can obtain coverage.
- Choice of programs: Not all employees have the same needs. Offering a variety voluntary plans allows employees to select the types of programs that are right for them.
- Payroll deduction: Many voluntary benefits can be offered through the convenience of funding via payroll deduction.
To learn more about how YouDecide can help your organization to structure a customized voluntary benefits program, feel free to request a demo with one of our consultants.