The retention factor of voluntary benefits

Adding these benefits won’t cost you anything, but will carry value with employees.

Payroll budgets may be more robust than they were a year ago, with some employers even hoping to expand their workforce, but there still isn’t a whole lot of wiggle room for new programs. So, how can employers stand out in an increasingly competitive labour market? Voluntary benefits may be a solution.

A recent poll of 2,500 American employees conducted by Well Point, Inc. shows that voluntary benefits—those that are offered by an employer where the employee pays all or most of the premium—provide employers with an edge when employees weigh the value of their jobs. In fact, 83% of those surveyed think more highly of employers that offer voluntary insurance benefits than those that don’t.

And, almost 90% look for a full range of health benefits (including voluntary ones) when accepting a new position. Fifty-six percent of employees feel this is “very important.”

For organizations that offer a full range of benefits, both employer-paid and voluntary, 82% of employees reported being satisfied with the offerings. That number fell by 30% at companies that don’t offer any type of voluntary benefits.

“The survey findings suggest that employees definitely see the value in voluntary benefits,” says Jeff Spahr, staff vice-president of vision and voluntary services for WellPoint. “Therefore, employers should consider including voluntary insurance as part of their benefits portfolio. Employees expect them, and when they are offered, employees tend to become healthier and more productive at work. Everyone wins.”

He adds, “We want employers to know how important it is to offer competitive benefits packages, and that voluntary benefits are a practical solution and a realistic option.” Although the uptake on voluntary benefits in Canada is much slower than in the U.S., given the current economic state, more employers are looking at implementing them.