Voluntary benefits are an essential tool for employees’ financial protection. The cost-shift of healthcare expenses to employees is no secret and the growing need for voluntary benefits to help cover those costs is well known. The financial security that comes with voluntary benefits is an end in itself, but for employers, there are plenty of other benefits for the workforce that extend well beyond financial protection; all of which are interconnected.
It starts with employee communication and engagement
Working with a carrier who provides communication and engagement can help employees understand their benefits and make the best possible decision for themselves and their families. On top of that, employers can piggyback on this communication to impart valuable information on corporate initiatives such as customer service practices, 401(k) participation or wellness programs.
Employees need this communication support as more than 90 percent of them say they need someone to talk to for benefits information.1 When you consider that, on average, 30 percent of an employee’s compensation is in the form of benefits, helping them to maximize this value is crucial.2 An employee who understands their benefits and is well-protected thanks to their employee communication helps translate to…
Employee satisfaction at work
Trustmark’s research has found that 90% of employees who enroll one-on-one with an insurance representative express high levels of satisfaction with enrollment. On top of that, 87 percent of employees feel that if an employer offers voluntary along with health insurance, it means they matter to their employers because of those benefits.1 Offering voluntary benefits, especially if an employee has a complete understanding of those benefits, increases an employee’s sense of worth to their employer. An increased sense of satisfaction and value at work can help with…
Employees who are very satisfied with their benefits are three times as likely to be very loyal to their employer and more than twice as likely to be satisfied with their job.3 When you consider that, on average, the cost of replacing an employee is roughly 21 percent of the employee’s salary, retention is crucial for employers.4 And, it’s not just about keeping employees, it’s also about…
Attracting new talent
More than 60% of employees under 50 years old wouldn’t consider taking a job that doesn’t offer voluntary benefits.1 Since voluntary benefits have become such an important part of the employee benefits landscape, more and more employees and, in particular, younger employees see these as a requirement when considering places to work. Employees who understand and appreciate their benefits, who are satisfied and loyal to their place of work also exhibit one other important behavior that employers will appreciate…
Businesses with the most engaged employees outperform low-engagement businesses by 22% in profitability and 21% in productivity.5 Improved communication as a part of offering voluntary benefits along with an increased sense of loyalty to their place of employment helps booster morale and can increase the effectiveness of employees as well as reduce absenteeism.
It’s easy to see benefits as an end to themselves. In truth, they are part of a much larger equation that affects the productivity and profitability of a workplace. Offering voluntary benefits will improve employee’s financial protection, but it will also cause a ripple effect throughout an organization that can positively impact a wide range of areas.
1 Trustmark Independent Employer Survey Conducted by The Connell Group. April, 2015.
2 Employer Costs for Employee Compensation. Bureau of Labor Statistics. March 2017.
3 2014 Employee Benefit Trends Study. MetLife. 2014.
4 “There are Significant Business Costs to Replacing Employees”. Center for American Progress. November, 2016.
5 How Employee Engagement Drives Growth.” Gallup. June 2013.