Considering voluntary benefits in 2016?

Benefit managers, benefit brokers, carriers and providers all realize that voluntary benefits have gone mainstream in the last few years. With benefit plans being a key tool in an employer’s recruitment and retention strategy, voluntary benefits have become popular because employees can choose products that complement their company-sponsored core benefits and round out a benefit portfolio that suits their individual needs. Voluntary benefits – both traditional and nontraditional ones – are standard inclusions in employee benefits packages today.

Even though employees are paying for voluntary benefits, they consider them valuable offerings because they are able to select what they want. Benefit managers are realizing that tailoring voluntary benefits to the diverse needs of their employees is paramount. And many employees have said they are more likely to stay with their current employer primarily due to the voluntary benefits package offered. More thought will be given to which benefits to offer as well as how many to offer.

Customize, customize, customize

Building a benefits package that offers plenty of choice for employees can be challenging. Today’s diverse workforce – spanning three generations from millennials to baby boomers – looks at work, life, money and finances in totally different ways. Matching voluntary benefits to the three generations in the workforce is one way to customize. Looking at nontraditional voluntary benefits by purpose helps employers prioritize. They can be classified as buying and banking options; lifestyle and convenience options; personal care and improvement options; and financial safety nets:

1. Buying and banking benefits give employees alternative ways to save, spend or borrow. They help employees who are underserved by traditional financing options or who want access to services that aren’t generally available to them otherwise. These options include paycards, short-term loans, employee purchase programs, employee discount programs, credit union and flexible spending accounts.

2. Lifestyle and convenience benefits allow the employee to take advantage of cost savings that they wouldn’t get otherwise because they are getting these benefits from their employer. Plus, by paying for these through payroll deduction, they have the convenience of one less bill to worry about. Among the lifestyle and convenience benefits are childcare, eldercare, pet insurance, auto insurance, adoption assistance, auto insurance, cyber security insurance and legal assistance.       

3. When employers offer personal care and improvement benefits, they show that they care about the whole employee while also encouraging them to be proactive about their physical, mental and financial health. Among the personal care and improvement benefits are financial counseling services, wellness programs, employee assistance programs and tuition assistance programs.

4. Financial safety nets offer protection from financial crises that can be potentially devastating for employees. Included in this category are home warranty insurance, homeowner’s insurance, identity theft protection and long-term care insurance.

While some of these benefits by purpose would appeal to all three generations, others can be more generation-specific. So based on their employee demographics, employers can decide on offerings.

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- Uncle "D"