Voluntary benefits in the workplace offer several advantages. These benefits are optional, meaning employees can choose to enroll in them and pay for them themselves, although employers may still facilitate access to these benefits through group rates or other arrangements. Here’s a few ways offering voluntary benefits in the workplace can be mutually beneficial for both employees and employers:
Customization: Employees can select the voluntary benefits that best suit their personal and family circumstances. This can include options like ancillary coverage (e.g., dental, vision, disability), and retirement savings plans, among others.
Cost Control: Offering voluntary benefits allows employers to provide a broader range of benefits without incurring the full cost. Since employees pay for these benefits, it can help you manage your benefit expenses while still enhancing your overarching benefits package.
Recruitment and Retention: Competitive voluntary benefits can make a company more attractive to potential hires and can also be a factor in retaining existing employees. Employees often view a robust benefits package, including voluntary benefits, as an essential part of their compensation package.
Tax Efficiency: Some voluntary benefits, such as certain retirement savings plans (e.g., 401(k)s or 403(b)s), can offer tax advantages for employees, allowing them to save for the future with pre-tax contributions.
Productivity and Well-being: By offering benefits that address employees’ financial, physical, and mental well-being, companies can potentially improve employee productivity due to health-related issues or financial stress.