American employees are increasingly viewing voluntary benefits as an important component of their overall benefits package.
According to Prudential’s The ABCs of Voluntary research brief, for 71% of employees, the offer of voluntary benefits increases the value of their company’s overall benefits program, up from 63% in 2012.
Employees report cost as the biggest advantage to the voluntary option, followed by convenience and enrollment without a medical exam.
“As people juggle their professional and personal obligations, the work site offers a convenient and cost-effective way to gain valuable financial protection,” says Bob Patience, vice-president, voluntary benefits, with Prudential Group Insurance. “Employers that provide effective communication, education and tools as part of the enrollment process help employees evaluate their own personal protection needs and make the choices that are right for them.”
The value of voluntary benefits is also recognized by employers, with 51% reporting they are currently implementing or have already implemented offering more voluntary products, up from 32% in 2012.
Cost also remains the biggest perceived advantage from the perspective of employers. For employers that have already ramped up their voluntary benefits offerings, 49% report they have been successful in achieving their desired cost savings, up from 28% the year before. The convenience of voluntary benefits and offering employees economical options were also cited as advantages by employers.
“Employers realize that a robust voluntary benefits offering is the right thing to do for themselves and for their employees’ overall financial wellness,” he says.
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