When small business owners create an employee benefits package, they want to make sure that they offer benefits that their employees care about. Although group health insurance continues to be one of the most significant employee benefits, small businesses may also want to consider offering voluntary benefits to their workforce.
Voluntary benefits can help to round out a comprehensive benefits package, and may often be offered to employees at minimal cost to the business.
Continue reading to learn more about voluntary benefits and why small business owners may find them useful in their employee recruitment and retention efforts.
Voluntary benefits are insurance products and additional services offered through employers, yet are partially or completely paid for by employees through payroll deductions. Employees’ contributions to the benefits may be either pre-tax or post-tax.
Common examples of voluntary benefits include:
Other types include hospital indemnity plans, identity theft protection, long-term care insurance, financial counseling, and pet insurance.
Offering voluntary benefits to employees as a small business could be a strategic and affordable choice for several key reasons:
Considering the potential advantages for both employers and employees, it may be worthwhile to look into how these additional benefits may be able to help your small business workforce thrive. Contact a licensed insurance broker or agent to find out more about your options.
Offering voluntary benefits may be more common than you think. According to the eHealth 2018 Small Business Health Insurance Report, 52 percent of surveyed small business owners offered a group dental plan, and 41 percent offered a group vision plan, in addition to group health insurance coverage.
Recently, more employers have started to realize the value of offering these kind of benefits. According to findings from a Willis Towers Watson 2018 survey:
Overall, the survey findings demonstrate how additional benefits have become an increasingly relevant consideration for employers seeking to complement their employee compensation packages.
Although a small business is not required to offer voluntary benefits to its workers, doing so could be an effective way to retain and recruit employees by providing more comprehensive coverage and support.
This article is for general information and may not be updated after publication. Consult your own tax, accounting, or legal advisor instead of relying on this article as tax, accounting, or legal advice.