Voluntary Benefits Offer a Competitive Advantage… with Proper Preparation and Planning By Jessica DePhillips, Voluntary Benefits Central and East Market Leader (Mercer) Jack Holder, President, Enhanced Benefits Insurance Solutions (EBIS) Michael Naumann, Voluntary Benefits, West RPL, Reliance Matrix As prices rise on everything from college tuition to gas and groceries, offering voluntary benefits — such as supplemental health (accident, critical illness, and hospital indemnity) coverage — helps employees protect their assets and mitigate rising healthcare costs. As these often come at relatively little cost to employees, why are so many brokers and businesses still reluctant to jump in? Despite the advantages of voluntary benefits, we still see a lot of hesitancy in the market. Some companies feel their high wages and comprehensive medical packages are enough. Others cite lack of participation as the reason to stop offering them. And fears of overburdening staff with extra administrative work is a big factor, too. Despite the obvious value to employees, companies are also missing out on an incredible employee retention tool — and a weapon against absenteeism — due to a lack of understanding of the incredible support that voluntary benefits provide when designed, introduced, and managed properly. When employers and employees truly understand the voluntary benefits being offered, participation increases significantly.
And to ensure employee buy-in, we need to educate them about what the benefits are and how they can use them in real-life scenarios as well as provide technical and educational support during annual enrollment, and year-round. Putting up a poster, sending an email, or mentioning the benefits once in an annual benefits meeting is not sufficient. We need to build enthusiasm and excitement as employees are educated and make the start of the enrollment period a high-energy event related to the overall culture of the employer. A successful roll-out depends entirely on preparation, which begins with the benefits themselves, offering those that employees can afford and are relevant to based off of the stage of life they are in. Identifying the right carrier(s) and the right platform to avoid technical difficulties is key, all of which require being educated yourself, or engaging a partner who is. The Clear Need for Voluntary Benefits Supplemental insurance helps employees avoid many financial expenses that medical insurance doesn’t cover after an illness, hospitalization, or an accident.
