How Do Voluntary Benefits Work?
Creating the perfect employee benefits package can be tough when your team spans multiple generations and life stages. While there are many types of benefits that are required both federally and from your state, there are plenty of others for employers to choose from to create the most competitive benefits for their current employees and future prospects. One option for employers to create flexible, employee-driven benefits packages are through voluntary benefits.
What are Voluntary Benefits?
Voluntary benefits are benefits offered through an employer but paid for partially or solely by workers through payroll default. While employees do usually fund these benefits, they can be a more cost-effective option for employees because they are offered on a group basis.
Why choose Voluntary Benefits?
By offering a variety of benefits, employers can give employees a level of personalization that seems to be the standard for the upcoming workforce. This isn’t to say, though, that you should offer employees a megamenu of voluntary benefits. Too many options could quickly become confusing, and cost your business more in the long run. Instead, take into consideration your workforce demographics, and tailor the program to reflect the needs (and wants) of your team.
“Employees want choices, and they want to be able to customize whatever packages are available to them.” – Amy Hollis
Examples of Voluntary Benefits
Voluntary benefits can include various types of benefits and plans, however, the most common types include:
- Life insurance
- Disability insurance
- Pet coverage
- ID theft protection
- Financial counseling
- Dental coverage
- Group vision plans
- Student loan repayment benefits
The first step in creating a benefits package that your employees need is by knowing where yours currently stands. Don’t be afraid to ask your employees for feedback and suggestions. A happy workforce equates to a successful business.
If you have any questions about your current employee benefits package, reach out to us here, or check out our Milliman Benefits Benchmarking Survey.