Great Value for Employers and Employees
A Great Value For Employers and Employees
During these tough economic times, how do employers find a balance between saving money and offering employees a full benefit package? Many employers are turning to voluntary benefits.
Voluntary benefits are benefits made available to employees and paid entirely by employees. Voluntary benefits offer value for both the employer and the employee. The employer has a cost-effective way to offer additional benefits for their employees and employees are have a convenient and more affordable way to purchase insurance coverage such as dental, vision, life, disability, etc. In some cases, voluntary benefits are used to bridge the gap of the higher deductibles many employers are offering to their employees.
Employers that offer voluntary benefits appear to be more focused on their employees. Results from Prudential’s Sixth Annual Study of Employee Benefits: Today & Beyond are in and they indicate that employers that offer voluntary benefits are more employee-focused, as opposed to cost-driven. The study found that 85% of employers say they offer one or more voluntary benefits, while nearly half offer four or more.
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Why do employers offer these voluntary benefits? The study found that 75% of employers say their top reason for offering voluntary benefits is to expand the benefits options available to their employees, while 42% offer voluntary benefits to fulfill an employee need and 30% offer them because they were requested. Of those that have been gauging the success of their voluntary benefits program, 76% say that employee satisfaction with the benefit plan has improved.
Employees appreciate being able to purchase voluntary benefits through their workplace and 80% believe that the workplace is an important source to purchase personal and insurance savings products. More than half of employees (52%) feel that offering voluntary benefits increases the value of their company’s offerings, in addition to giving them a trustworthy option that is also convenient because premiums are paid through payroll deductions. Thirty percent (30%) of employees that purchased life insurance products through their employer said they did so simply because the product was offered to them at work.
Employees also feel that purchasing products through work is a more trustworthy option and that the carrier names offered are important. More than half (51%) of participants consider the provider name to be important when deciding whether or not to enroll in voluntary options.