Voluntary Benefits – Do they Make Sense?
The current economic landscape is still a rough one. While plenty of gains are being made, insurance costs are still expected to rise by as much as eight percent over the next year, which means that it's going to be even harder for companies to afford to offer employee insurance and other benefits. Voluntary benefits are gaining traction and today make up about one third of all benefits being taken advantage of in the country, and they may very well be the right call for your company. Understanding voluntary benefits is pretty simple to do, and taking a closer look at the various benefits they can offer to employers and to employees will also help you determine if voluntary benefits make sense for your company and your employees.
Basically, voluntary benefits work very similarly to traditional ones except that the employer doesn't usually pay for them, or only pays a small fee to maintain them. Instead, the employee will have the option of adding different voluntary benefits to their package and paying for them out of their check. A number of different voluntary benefits could be offered, ranging from insurance to retirement plans. In most instances, the employer will be able to select several different options and offer them to their workers to ensure that whatever is needed from the benefits packages is attained.
The advantages of voluntary benefits for employers are obvious. They're allowed to offer their employees different benefits and help them save money on their insurance or retirement while not having to spend a small fortune on the ability to do so. Every employer wants do provide the best benefits possible to their workers, but in a time when smaller businesses can pay up to 18 percent more for insurance plans that larger companies, the truth is that voluntary benefits may be the only real option available. It's better than nothing, and in some cases voluntary benefits are enough to satisfy most employees.
Employees, for the most part, are happy to have voluntary benefits as an option as well. Surveys have found that around eighty nine percent of employees value their health insurance, and the costs savings that come with group rates on voluntary benefits plans are often enough to satisfy their needs without costing them a fortune as well. Voluntary benefits are certainly worth looking into, especially for small to medium sized companies. Larger corporations often get the best rates on major benefits packages, but the rest of America may find that voluntary benefits are exactly what their company and their employees are looking for.