In yesterday’s Advisor, Navera president and CEO Steve L. Adams provided tips on taking advantage of voluntary benefits; today, we share more on this compensation trend and how to ask the right questions for 2015.
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MetLife’s 12th Annual U.S. Employee Benefit Trends Study found that 60 percent of employers agree (and 34% strongly agree) that the reason they offer voluntary benefits is to replace employer-paid benefits programs in order to reduce benefits costs. It also showed that 80 percent of employees value benefits that are personalized to their own circumstances and ages.
It is interesting, then, that the same study found a dip in the number of companies that agree with the statement “voluntary benefits are a significant part of our company’s benefits strategy.” Some theorize that in 2015 employers will be mainly focused on complying with the Affordable Care Act, which will make them less likely to implement new benefits. How can you prevent voluntary benefits from falling through the cracks?
Ask the Right Questions
With clear advantages but also some uncertainties to voluntary benefits, it’s important for employers to tailor their offerings to maximize employee participation. Here are three questions to consider.
What are the demographics of our company, and how might they change with future recruits? While the MetLife study showed that personalized benefits are appealing across generations, they are particularly popular among Gen Y (also known as Millennials), 86% if whom favor them. If Millennials are a key factor in your recruiting strategy for 2015 (and they most likely are), voluntary benefits will help attract them.
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- Which benefits will appeal to most employees? Based on the present and predicted future demographics, select your benefits offerings to align with your goals of recruiting and retention. Health products drove most 2014 growth (for example, critical illness and accident insurance in particular have grown at rates in the double digits for the past several years), but focus on products that will fit your employees’ unique needs.
- How can we present these products in a way that doesn’t cause information overload? 64% of employees are interested in having their employer provide a wider array of voluntary benefits, but keep in mind that it is possible to have too much of a good thing. An overload of confusing options can cause employees to disengage from the whole process altogether.
With costs rising and budgets getting tighter, many employers are looking to voluntary benefits to fill any gaps in coverage. While healthcare and life insurance tend to receive the most attention, there is another valuable asset to any benefits package—comprehensive legal insurance.
Legal entanglements are going to happen in nearly everyone’s lifetime, and can be a great source of stress. Offering legal insurance provides a safety net for these bumps in the road, and is a wonderful living benefit—it’s not just there for when tragedy strikes. Want to learn more? Start with the free white paper from ARAG®, How Comprehensive Legal Insurance Works for Employers and Employees: Three Typical Scenarios.
Comprehensive legal insurance works for anyone and everyone! Download the free best practices report, How Comprehensive Legal Insurance Works for Employers and Employees: Three Typical Scenarios. Learn More
The advantages of these programs are numerous, and not just for employees—businesses can also reap the rewards. This best practices report shows just how effective comprehensive legal insurance can be in controlling costs, protecting assets, filling coverage gaps, and providing peace of mind for both employers and their workforce.
You’ll learn:
- The basics of voluntary legal benefits
- How comprehensive legal insurance can help with 3 everyday scenarios
- The cost savings of legal insurance programs
- What the advantages are for both employees and employers
- And much more!