How Voluntary Benefits Can Help
Studies have shown that today’s employee is looking to their employer for financial guidance — what this really means is financial well-being and that includes voluntary benefits.
Voluntary benefit packages are becoming increasingly popular today because they allow employees to choose products that satisfy their individual needs. These benefits complement their company-sponsored core benefits and can provide comfort that goes well beyond a standard benefits package.
How it works
Through voluntary, non-traditional plans, employees gain alternative ways to fill in the gaps left by scaled-back benefit programs. They can also provide an additional level of security during times of financial emergencies that can be so devastating for employees and their families. Here’s a brief look at some of the offerings:
Buying and banking benefits — short-term loans, pay cards, employee discount programs, flexible-spending accounts, employee purchase programs, and more.
Lifestyle and convenience benefits — child care, auto insurance, elder care, pet insurance, legal assistance, cyber security insurance, adoption assistance – even pet insurance.
Personal care and improvement benefits — wellness programs, financial counseling services, employee assistance programs, and tuition assistance programs.
Financial safety nets — homeowner’s insurance, home warranty insurance, long-term care insurance and identity theft protection.
Voluntary benefits and employee loyalty
Employees consider voluntary benefits to be extremely valuable because they can choose what they want, even though they are paying for them (typically through payroll deduction). Moreover, research has shown that employees are more likely to stay with their current employer because of voluntary benefit packages. Again, employees like the freedom of being able to choose benefits and packages that best fit their individual needs.
Appealing to multi-generations
The challenge for employers and benefit managers is offering benefit packages that appeal to a diverse workforce that can span three generations – from millennials to baby boomers.
Baby boomers, born from 1946 to 1964, most fear losing their pension, savings or job, and being unable to retire. That said, salary, job security and health benefits are key for retaining baby boomers. Non-traditional benefits that appeal to them include financial counseling, discount programs, auto insurance, long-term care insurance, financial counseling, and more.
Generation Xers (born between 1965 and 1979) fear being overshadowed by millennials and losing out on job promotions. Important factors for retaining them as loyal employees include salary, independence, autonomy and promotion. Benefits that appeal to them include wellness programs, financial counseling, child care, discount programs, employee purchase programs, and more.
For millennials (born 1980-2000), professional fulfillment matters more than salary. They are more apt to move from job to job and expect personal relationships and fast rewards. They value future financial security and expert advice on how to make the most of their money. Among non-traditional benefits that appeal to them include discount programs, tuition assistance, wellness programs, and financial counseling.
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Would you like to learn more about whether voluntary benefits are right for your organization? Or need help revising and implementing policies? Visit PeoplePro and click LIVE Chat to schedule your call —we’re ready to help so you can focus on your business.