Reasons Your Company Should Offer Voluntary Benefits

According to the U.S. Bureau of Labor Statistics, some 33 million Americans have left their jobs since 2021. Some decided to retire; others decided to provide their own childcare, and still others don’t want to put their health at risk during a global pandemic. 

For the most part, though, “The Great Resignation” is more about what the folks at NPR’s Planet Money have termed “The Great Renegotiation.” As the pandemic eases, more jobs are becoming available, and people are being choosier about where they want to work.

Which is one of the reasons your company should offer voluntary benefits. 

What Are Voluntary Benefits?

Providing a broader range of options, along with more flexibility, voluntary benefits packages give workers the power to tailor benefits packages to their own circumstances. Packages can include car insurance, long-term care coverage, disability income, identity theft protection, travel insurance, and even pet insurance. 

Offered on top of traditional benefits packages employers provide, some are paid for with pre-tax dollars by the employees who choose to take advantage of them. 

Pre-Tax benefits include:

• Employee 401(k) contributions

• Adoption assistance

• Dependent care

• Group term life insurance

• Health Savings Accounts

• Disability coverage

A Win-Win for You and Your Employees

Voluntary benefits packages give employers the ability to present a more competitive offer and workers the opportunity to get these types of coverage at a reduced rate — often with tax-free dollars. 

Moreover, your cost for doing so is next to nil. Yes, you will encounter some administrative costs, but these are minor in the overall scheme of things. Even better, those expenses can be offset by the payroll tax savings you’ll gain based on Section 125 of the IRS Tax Code.

Reduced Health Insurance Costs

In situations in which your company cannot offer to offer top-tier health coverage, employees could be facing high deductible costs when they need health care. A voluntary package can help employees fill in the gaps their base coverages might leave. 

Improves Retention and Morale

In addition to making your company more attractive to new hires, a strong voluntary benefits plan can make your existing employees think twice before they leave. Having the ability to tailor their benefits coverage to their specific needs is a powerful incentive to stay on the job. What’s more, knowing they work at a place at which their wellbeing is a serious consideration inspires loyalty and gives people a reason to feel good about where they work.

Enhances Productivity

Going together with high morale is strong productivity. Stress causes people to miss work, make mistakes and just generally be ineffective at their jobs. The peace of mind that comes with knowing your healthcare is covered, your family is protected and “what-if” scenarios are covered makes it easier for employees to do their best work.

Provides Solid Choices

One of the most important aspects of a voluntary benefits plan is the fact that it is — voluntary. Rather than locking all your people into a “one-size-is-trying-to-fit-all” package, this gives them options to have it their own way. According to the leading human resources and benefits consulting firm, Mercer, 60% of employees say they want to have the ability to purchase a wide variety of non-medical benefits.

Effort-free Implementation

Working with a voluntary benefits broker like Mercer combines brokerage and consulting expertise with in-house administration capabilities. This gets you customized packages as well as access to best-in-class insurers And, when it comes down to it, this is one of the most compelling of the reasons your company should offer voluntary benefits. You’ll get all

 the advantages of doing so, with next to no effort.