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.
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.
Home and auto insurance are essential expenses for most employees. By offering discounted rates through group policies, employers can:
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).
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).
For employees, the decision to purchase insurance through an employer-sponsored program comes with several considerations.
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).
For companies considering adding home and auto insurance to their benefits package, here's a step-by-step guide:
Conduct surveys or focus groups to gauge interest in insurance benefits.
Look for insurance providers or benefits platforms that offer:
Clearly explain the benefits, costs, and enrollment process to employees.
Regularly assess the program's impact on employee satisfaction and retention.
Implementing a new benefits program can be challenging, but platforms like BenefitHub simplify the process. BenefitHub offers:
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.