Enhance your compensation package with voluntary benefits to attract and retain top talent in today's competitive job market.
Understanding the Importance of Voluntary Benefits
In today's competitive job market, traditional employee benefits are no longer enough to attract and retain top talent. More than half (51%) of employees are not satisfied with their 2024 benefits package as-is, and may begin looking for companies that have more comprehensive offerings (1). More than ever, employees are looking for more than just the basics when it comes to their compensation package. That's where voluntary benefits come in. Voluntary benefits are additional perks and incentives that companies can offer to their employees, beyond the standard benefits package, oftentimes at little to no cost to the employer. Read more about top voluntary benefits here.
Studies have found that employees consider voluntary benefits to be an essential part of their overall compensation package. In fact, according to Buck's 2022 Wellbeing and Voluntary Benefits Survey, 68% of employees agreed that voluntary benefits are an essential part of a benefits package (2). These benefits can include things like home & auto insurance, health & wellness initiatives, employee discount programs, and more.
Why Traditional Employee Benefits are No Longer Enough
Traditional employee benefits, such as health insurance and retirement plans, are important, but they are no longer enough to meet the needs and expectations of today's employees. Employees are looking for more comprehensive and personalized benefits that can help them save money and manage their finances. According to Franklin Templeton, employee expectations about benefit offerings has increased by 74% in recent years (3).
As the job market becomes increasingly competitive, companies need to think outside of the box to attract and retain top talent. Furthermore, employee needs are changing. Subsets of the workforce, divided by age, gender, industry, and more, expect different benefits. For example, women, Gen Z, Millennials, employees with disabilities, and people of color are more likely to expect employers to demonstrate care in their personal lives, while Boomers and manual labors do not have the same expectations (4).
By offering additional perks and incentives, companies can show that they value their employees and are committed to their well-being.
Value of Offering Voluntary Benefits to Employees
First and foremost, expanded benefits packages that address the growing range of employee needs can help attract and retain top talent. Modern employees are looking for more than just a paycheck. They want to work for a company that values them and offers additional perks and incentives. In 2023, 93% of employee consider workplace well-being as important as salary, compared to only 83% in 2022 (4). Furthermore, 87% of employees would consider leaving a company that does not focus on their well-being, and 65% say having access to well-being programs at work improved their productivity (4).
Along with increasing productivity, access to voluntary benefits can also help improve employee morale and engagement. When employees feel appreciated and rewarded for their hard work, they are more likely to be motivated and engaged - leading to higher productivity and better overall performance.
Additionally, voluntary benefits can help employees save money and manage their finances. For example, offering a recognition and rewards program can allow employees to earn points or incentives that they can use towards purchases or experiences, or offering employee discounts through a platform like BenefitHub. Helping employees save money on things they would have otherwise had to pay for out of pocket can make paychecks stretch further, and increase the perceived value of their compensation. 61% of employees agree that voluntary benefits provide a better value than buying similar services outside of their employer (2).
Overall, offering voluntary benefits can be a win-win for both employers and employees. It can help attract and retain top talent, improve employee morale and engagement, and provide employees with valuable perks and incentives. And, since most voluntary benefits are optional and can be offered at no-cost to employers, it seems like a no-brainer.
Implementing a Successful Voluntary Benefits Program
Implementing a successful voluntary benefits program requires careful planning and consideration. Here are some steps to help you get started:
1. Assess employee needs: Before implementing a voluntary benefits program, it's important to understand what your employees want and need. Conduct surveys or interviews to gather feedback and identify the types of benefits that would be most valuable to your workforce.
2. Research vendors: Once you have identified the types of benefits you want to offer, research vendors that specialize in those areas. Look for reputable vendors with a track record of providing high-quality products and services.
3. Communicate the benefits: Once you have selected your voluntary benefits, communicate them to your employees. Make sure they understand the value of the benefits and how to take advantage of them. Consider hosting informational sessions or providing materials that explain the benefits in detail.
4. Evaluate and adjust: After implementing your voluntary benefits program, regularly evaluate its effectiveness. Collect feedback from employees and make adjustments as needed to ensure the program is meeting their needs and expectations.
By following these steps, you can implement a successful voluntary benefits program that meets the needs of your employees and helps attract and retain top talent.
Maximizing Employee Engagement Through Voluntary Benefits
Voluntary benefits can play a key role in maximizing employee engagement. When employees feel valued and appreciated, they are more likely to be motivated and engaged in their work. Here are some strategies for maximizing employee engagement through voluntary benefits:
1. Offer personalized benefits: One size does not fit all when it comes to voluntary benefits. According to Metlife, "75% of employees would like custom decision-making support based on their mental, physical, and financial needs" (4). Offer a variety of options that cater to different employee needs and preferences. This can include things like flexible work arrangements, wellness programs, or financial education resources.
2. Communicate the value: Make sure employees understand the value of the voluntary benefits you offer. Highlight the ways in which the benefits can help them save money, improve their well-being, or enhance their work-life balance. This can help employees see the benefits as valuable and worth taking advantage of.
3. Provide ongoing support: Once employees have chosen their voluntary benefits, provide ongoing support to ensure they are able to make the most of them. This can include things like regular check-ins, training sessions, or access to resources and tools.
4. Recognize and reward: Use voluntary benefits as a way to recognize and reward employees for their hard work and achievements. This can include things like bonus programs, employee of the month awards, or special perks and incentives.
By implementing these strategies, you can maximize employee engagement and create a positive and motivating work environment.
Future Trends in Voluntary Benefits
The world of voluntary benefits is constantly evolving, and it's important for companies to stay ahead of the curve. Some future trends include personalization, technology integration, greater emphasis on mental health, and focus on financial wellness.
As employees continue to seek flexibility and choice in their benefits, personalization will become increasingly important. Companies will need to offer a range of options that can be tailored to individual employee needs and preferences. Employees today have different priorities and preferences when it comes to their benefits, and 79% of employees want benefits tailored to life stages, as well as their positions and personal circumstances (4). There is increasing desire for flexibility and choice in choosing benefits package, and different groups of workers have different priorities. Voluntary benefits can provide employees with the flexibility they desire, allowing them to choose the benefits that are most important to them across mental, physical, and financial needs. One-size-fits-all benefits packages no longer suit the increasingly diverse workforce, and customization is needed to support the full range of employee needs without compromising costs.
Technology will play a key role in the future of voluntary benefits. From digital platforms that make it easy for employees to access and manage their benefits, to data analytics that help companies better understand employee needs, technology will continue to transform the voluntary benefits landscape. AI in the workplace is becoming more commonplace, and employee report more optimism than pessimism.
Increased focus on mental health is a trend affecting all areas of life, and it exists in the workforce as well. Voluntary benefits that support employee well-being, such as access to counseling services or wellness programs, will be in high demand. As more companies begin to offer these services, we do see a slight increase (3%) in reported employee mental health in 2024 (4). However, 31% of employees are still struggling with mental health (4).
Mental health is only one element of holistic wellbeing - financial health, social health, and physical health are also contributing factors. A sharp decline in reported financial health in 2023, and lingering financial stress in 2024, are impacting overall reported employee health. As employees look for ways to combat this stress, save money, and manage their finances, voluntary benefits that focus on financial wellness are becoming increasingly popular. This can include things like financial planning resources, student loan assistance programs, or retirement savings tools. 57% of employees do not consider themselves financially healthy; according to Buck, "employers plan to invest most in physical wellbeing, yet financial health is the #1 need cited by employees" (2).
By staying informed about these future trends, companies can ensure their voluntary benefits program remains relevant and attractive to employees.
How BenefitHub Can Help
BenefitHub is a leading provider of employee discounts and comprehensive benefits solutions. Our platform offers a wide range of benefits that can help companies attract and retain top talent, improve employee engagement, and provide valuable perks and incentives to employees.
With BenefitHub, you can customize your voluntary benefits program to meet the unique needs of your workforce. Our platform is easy to use and provides employees with access to a variety of benefits, including discounts on shopping, travel, entertainment, and more. Plus, our team of experts can provide guidance and assistance every step of the way, from selecting the right benefits to communicating them to your employees.
If you're ready to enhance your compensation package with voluntary benefits, BenefitHub is here to help. Contact us today to learn more about our solutions and how we can support your employee benefits strategy.
Sources:
(1): Glassdoor Economic Research. "Conversation Starter: Half of Professionals are Not Satisfied with 2024 Benefits Package"
(2): Buck 2022 Wellbeing and Voluntary Benefits Survey Report
(3): Franklin Templeton: 2024 Voice of the American Workplace Survey
(4): Metlife's 22nd Annual U.S. Employee Benefit Trends Study 2024