5 Things You Should Know About Voluntary Benefits

For quite some time, voluntary benefits have been seen as add-on, nice-to-have benefits. Obviously that’s no longer the case. These days, employers are using voluntary benefits to expand their benefit offerings. Below you will find 5 important things you should know about voluntary benefits:

1. Voluntary benefits are here to stay: Voluntary benefits aren’t just a short-term cost-containment measure in response to the current economic downturn. They will be a fixture of employee benefit packages going forward as employees take more responsibility for their benefits.

2. Voluntary benefits must be valuable: Make sure the voluntary and employer-paid benefits work together and the benefits offered are meaningful, wanted and needed.

3. Voluntary benefits need to include choices: Employees have different needs. Offering a choice of benefit levels allows the employee to select the benefit that best needs their needs and they can afford.
4. Voluntary benefits need to be effectively communicated: Employees need to know the who, what, when, where, why and how of benefits. Taking time to create a voluntary education plan tailored to your client’s needs helps ensure employees are satisfied.

5. Voluntary education should be needs-based: Employees are much more likely to purchase benefits if they understand the financial impact on them and their paycheck. Avoid high pressure sales tactics that result in employees terminating coverage later on.

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