In today's competitive job market, offering a comprehensive benefits package is crucial for attracting and retaining top talent. While health insurance and retirement plans are standard offerings, forward-thinking companies are expanding their benefits to include discounted home and auto insurance.
What Employees Want: Discounted Home & Auto Insurance
Financial pressures are stronger than ever. In fact, nearly one in three consumers (34.9%) said they are concerned about making ends meet in 2024, up from 28.7% a year earlier (1). The demand for comprehensive benefits packages continues to grow, with insurance benefits playing a pivotal role. According to the Society for Human Resource Management (SHRM), 53% of employees rate financial (non-retirement) benefits as important (2). But, what is the role of employee benefits in home & auto insurance? Read more here.
The Appeal of Discounted Insurance
Home and auto insurance are essential expenses for most employees. By offering discounted rates through group policies, employers can:
- Alleviate financial stress for employees
- Provide a tangible, everyday benefit
- Differentiate their compensation package from competitors
- Give employees a one-stop-shop that protects their data (no spam!)
How Can Employee Insurance Benefits Impact Retention?
Employee retention is a critical concern for businesses, with the estimated costs of employee turnover ranging from 33% up to 200% of the departing employee’s salary (3). Offering comprehensive benefits, including insurance perks, can significantly improve retention rates.
In fact, we're already seeing the impacts of additional benefits on retention. The Global Benefits Attitudes Survey by Willis Towers Watson (WTW) found that 51% of employees reported that benefits packages were an important reason why they decided to work for their current employer - an increase from only 35% in 2017 (4). Many of these employers have expanded their offerings to financial wellness programs and voluntary benefits, including discounted insurance options. In particular, when asked to think about their financial situation, 27% of employees said they want "access to insurance to protect me against financial losses," and 36% said they want their employers to "help me to get the most out of me benefits" (4).
This is especially relevant as 1 in 3 employees are considering leaving their job - mostly due to financial stressors (5). A recent Economist Impact Study found that 70% of employees would be willing to switch jobs for better benefits - proving that benefits and retention go hand-in-hand (6).
The Link Between Benefits and Satisfaction
Across the internet, the link between employee benefits and job satisfaction has been well-documented in various studies and reports. In particular, The 2021 SHRM Employee Benefits survey found that 92% of employees reported that their benefits package impacts their job satisfaction (7). This satisfaction translates directly to improved retention rates and productivity. Harvard Business Review (HBR) shows a causal link between happy workers and a 13% increase in productivity (8). In the inverse, 35% of employees state that they are less productive when they are financially stressed (9).
Should You Buy Auto & Home Insurance Through Your Employer?
For employees, the decision to purchase insurance through an employer-sponsored program comes with several considerations.
Pros of Employer-Sponsored Insurance
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Potential for significant discounts (5-15% on average)
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Convenience of payroll deductions
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Simplified application and claims processes
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Unbiased agents will ensure no bombarding of carrier email and spam messages
Cons to Consider
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Potentially limited choice of insurance providers
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May not always offer the best rates for all individuals
According to J.D. Power's 2023 Insurance Shopping Study, "65% of employees who were offered home and auto insurance through their employer found the rates to be competitive or better than individual market rates" (10).
Implementing Home & Auto Insurance Benefits: A Guide for Employers
For companies considering adding home and auto insurance to their benefits package, here's a step-by-step guide:
1. Assess Employee Interest
Conduct surveys or focus groups to gauge interest in insurance benefits.
2. Research Providers
Look for insurance providers or benefits platforms that offer:
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Competitive group rates
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Easy administration
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Flexible coverage options
3. Develop a Communication Strategy
Clearly explain the benefits, costs, and enrollment process to employees.
4. Monitor and Evaluate
Regularly assess the program's impact on employee satisfaction and retention.
BenefitHub: Your Partner in Comprehensive Employee Benefits
Implementing a new benefits program can be challenging, but platforms like BenefitHub simplify the process. BenefitHub offers:
- A curated marketplace of 25+ carriers to help offer the best rates available
- In-house agents to help employees with their personalize insurance needs
- Seamless integration with existing benefits systems
- Dedicated support for both employers and employees
- Customizable perks and discounts beyond insurance
- Ability to offer standard and non-standard carriers to help those employees with less-than-perfect driving records
"Our BenefitHub team is a pleasure to work with on employee communications and discount offerings. Our employees love the wide variety of discounts available. Additionally, the ability to shop home & auto insurance as well as pet insurance is a great perk!"
Conclusion
Offering discounted home and auto insurance as part of your employee benefits package can be a powerful tool for improving satisfaction, reducing financial stress, and boosting retention. While implementation requires careful planning, the potential returns in terms of employee loyalty and reduced turnover costs make it a worthwhile investment.
By partnering with a comprehensive benefits platform like BenefitHub, companies can easily integrate these valuable insurance perks into their existing benefits strategy. As the job market continues to evolve, forward-thinking employers who prioritize holistic employee well-being through innovative benefits will have a significant advantage in attracting and retaining top talent.
Ready to explore how discounted home and auto insurance can enhance your benefits package? Contact BenefitHub today to learn more about our customizable solutions, or learn more about how to compare side-by-side insurance options.