Offering voluntary benefits is a great way to enhance your benefits package, stand out from the competition, and increase employee satisfaction — all with minimal impact to your budget. Although employers may offer numerous types of voluntary benefits that can deliver convenience and value for employees, many employees do not understand the advantages of these voluntary benefit options or are unclear about how they work. Educating your employees on the advantages of voluntary benefits is important in order for both of you to reap the rewards.
Voluntary Benefits And Their Importance
What Are Voluntary Benefits?
Voluntary benefits are insurance products sold to employees at work through payroll deductions. This is contrary to health insurance premiums, which employers usually have to pay a significant portion. Offering voluntary benefits allows flexibility for employees to decide how to spend their discretionary income on additional products and services that fit their needs. In many cases, employees are gaining access to different types of coverage that they normally would not have. Since employees pay most or all of the cost, it’s very inexpensive for employer groups to offer these benefits. That makes voluntary benefits a win-win for both employers and employees.
Why Offer Voluntary Benefits?
Long-term employment is becoming the exception. In today’s time, employees are mobile, making employers who offer additional benefits stand out. Voluntary benefits can be convenient and appealing to these groups of people. Recent employer trends have shown us competition for high-quality employees and how offering good benefits can be key for recruiting. Additionally, since there are fewer Human Resources personnel, there is a greater need for employee benefits specialists. Offering these benefits can provide a wide range of coverage for your human capital and ensure that they are satisfied.
Demonstrate The Value
When compared to employer-sponsored benefits, many employees may fail to see the value of voluntary benefits that they must personally finance. For example, one advantage of voluntary benefits is that purchasing insurance through an employer group is oftentimes cheaper than buying individually, yet research shows that employees are usually not aware of this. When promoting your voluntary benefits options, discuss the benefits of having coverage, the risks of going without them, and emphasize the convenience and value of purchasing through the company and paying through payroll deductions.
Getting all your employees informed on their potential voluntary benefits options is easier said than done. Ensure that employees fully understand their policy to prevent any misunderstandings that can lead to resentment toward the employer. When offering any benefit option, employer-paid or voluntary, you should be sure that your employees understand exactly how the coverage works. Here is how Alltrust Insurance can assist to make sure your employees are sufficiently educated about their benefits:
- We can invite current employees to the monthly or quarterly benefits meetings provided for newly hired individuals.
- Also, many insurance providers are willing to send a representative to discuss their coverage with employees.
- We also have benefits administrators to meet with employees throughout the year, and provide custom video recordings that can be played back when needed.
- To improve your existing benefits communication program try ultiling your intranet or social media. These platforms provide a convenient and effective way to reach out to your employees with educational information, tips and reminders.
By allowing employees an opportunity to discuss and educate themselves on their voluntary benefits options, you are preventing any complications in the future. Also, employees will be able to pick and choose options that benefit them and their needs. In addition to boosting participation in your voluntary benefits program, providing this meaningful education can position you as a valuable source of information. In return, this will strengthen employee satisfaction and loyalty towards your company.
Voluntary Benefits Overview
Having voluntary benefits presents a plethora of different benefits for employees to choose from. Typical product lines usually include:
- Critical illness
- Hospital confinement
- Medical gap & mini meds
Although employees won’t be able to select every single type of benefit, the advantage of voluntary benefits is that employees choose the ones they truly need coverage for. The benefits are also 100% employee paid, deducted through payroll, and are portable and extremely convenient to purchase.
Communication Is Essential
As discussed earlier, communicating benefits options with employees is essential. Employers should consider the following communication methods:
- Employee meetings: Bring in specialists or use your HR staff to communicate benefits and supplemental insurance options that are available to all employees. Maintain a consistent message and state all of the requirements for participation. Be informed and ready in case questions arise.
- One-on-one meetings: If possible, have a specialist come to the worksite and consult employees about the benefits available. The specialist will be able to use salary illustrations so that the employees know exactly how their paycheck will be affected. A date should be scheduled for specialists to come back for those who need additional time to make decisions.
- Group meetings: Create communication pieces to give to employees. Use a consultative approach to educate employees on their benefits and supplemental insurance options. Use the meeting to instruct employees on how and when to enroll.
- Online enrollment: Online enrollment provides easier and more consistent communication, especially if multiple sites are involved by setting up a service program. Electronic data transmission creates greater accuracy and a quicker customer response time. This is encouraged for businesses who still have not returned to the workplace.
Voluntary Employee Benefits/Enhanced Benefits In South Florida
Are you an employer who wants to offer voluntary benefits but doesn’t know where to begin? Learn more about available social media and employee benefit communication resources with Alltrust Insurance. Our mission is to provide you with the right guidance and help you navigate the complexities of employee benefits. Whether you need a reliable insurance partner or simply want more information, our experts can provide you with the answers you seek. Contact us today!