Inarguably, the success driver of any organization is its workforce. And this is exactly why employers today are striving harder than ever to formulate better rewarding strategies and appealing healthcare benefit plans to ensure employee retention and satisfaction. Retaining skilled staff is not only important to add to the bottom-line but also to cut down the high recruitment and training cost that can eat a huge chunk of your profits.
According to a research study by the SHRM (Society for Human Resource Management), it costs an employer on average 6 to 9 months salary to replace a salaried staff member. This means that an employee that is salaried at $60K annually will cost the company around $30K to $45K in recruiting and training a replacement.
Employers across industries and nationwide are now are adding voluntary benefits to create robust and rewarding benefits packages for attracting and retaining employees. Let’s take a closer look at what it is and how it works?
What are Voluntary Benefits?
The idea of voluntary benefits has evolved from the growing need for customization. Employees today want their benefits packages to fit their needs and that is what the concept of voluntary benefits helps them achieve.
Voluntary benefits can be best described as insurance products that employees can select and add to their benefits plan to fill the gaps in their medical insurance and meet their healthcare needs. This includes both traditional and non-traditional benefits.
Traditional voluntary benefits range from life insurance to dental, disability, vision, critical illness, cancer and even accident insurance; while non-traditional benefits include online education, career development, pet coverage and financial planning.
How They Work?
Voluntary benefits are a win-win for both sides. It’s relatively simple for employers to offer voluntary benefits. The employer just needs to select a vendor, and that vendor then manages the rest such as forms, claims, customer service, and insurance cards. The employer pays the administration fee while premiums are cut from the employee’s paycheck, that too on a pre-tax basis for majority of the benefits.
Simply stated it allows employers to offer a greater variety of benefits to employees, minus the cost that is associated with offering paid-for benefits.
This option gives employees the power and flexibility to choose voluntary benefits that suits their lifestyle. For example, benefits that may be appealing for single employees at first may not be optimal once they get married, or have children, or when they are close to their retirement. So, personalization option definitely works.
For more information on voluntary benefits or service assistance, get in touch with us today. Call us on (877) 355-6070 or email us at info@jsbenefitsgroup.com. Our team of friendly and experienced benefits experts will provide you all the information and assistance you need regarding voluntary benefits.
