Healthcare costs will only continue to inflate according to recent trends, which will inevitably shift the cost onto employees and result in increased premiums every month. This makes voluntary benefits the new buzzword in the workplace. According to a survey conducted by Willis Towers Watson, over 92% of US employers now believe that voluntary benefits will become increasingly important to their employees over the course of the next five years.
The idea of voluntary benefits is simple: They supplement traditional benefits by giving employees a versatile access to choices without costing too much to the employer. Employees are now beginning to think of their health insurance in the context of the Affordable care Act and the Patient Protection which may be scheduled for a revamp under the present US administration; this is where voluntary benefits come to save the day.
Some of the more popular voluntary benefits include supplemental life, disability, dental, vision, critical illness insurance and now even includes pet insurance. In fact more than 60% of employers are poised to offer pet insurance by the year 2018.
Today’s workplace is all about customization
The advent of the internet has brought with it the age of customization. And as is the case with technology and video on demand services which are highly curated, employees expect their workplace to be similarly customizable, an idea which rests at the core of voluntary benefits.
The best part about voluntary benefits is that they are paid in part (or entirely) by the employee through their payroll deferral. Traditional voluntary benefits no longer fit the entire package because the needs of employees continue to change every day.
The idea extends not only to fill in the gaps under an employee’s health insurance, it goes far beyond to also include nontraditional benefits such as paid education, skills development, financial planning and their pet insurance.
Because of the broad scale of voluntary benefits, employers face a dilemma. They either end up over generalizing the characteristics of the generation or fail to anticipate their needs and requirements. Each generation has its own lifestyle, financial habit and buying preferences. Companies will need to look into the different kinds of personas which fit into their workplace to properly structure their benefits.
It also helps with employee retention
Employee retention statistics are at an all time low according to research from Willis Towers Watson, which states that over one quarter of employees are at a very high risk of turnover. Many of these employees are top performers who are critical to the success of their company, not just entry level employees. Add to this the high cost of recruiting, on boarding and training – and this paints a very grim outlook for businesses.
So where do small and medium enterprises stand in all this?
Because of the nature of voluntary benefits, employers don’t have to break the bank to introduce these benefits at the workplace. Instead the employee pays part of the premium and the employers contribute the remaining portion.
If you’re daunted by the prospects of a structured voluntary benefits program, then get in touch with a representative from JS Benefits and schedule a meeting. Employers should talk to a professional before committing themselves to a dedicated plan.
