Voluntary Benefits for Employees

Benefits and insurance issues important to you - brought to you by the insurance specialists at The Ashley Group.

Offering voluntary benefits is a great way to enhance your benefits package, differentiate from competitors and increase employee satisfaction – all without expanding your budget. Employers may choose to offer voluntary dental, vision, long-term care, property and casualty, and other types of benefits, all of which can deliver convenience and great value for employees. However, many employees do not understand the advantages of these voluntary benefit options or are unclear how these insurance benefits work. To make sure that employees are taking advantage of your voluntary benefit opportunities, educate your workers about those benefits.

Demonstrate the Value
When compared to employer-sponsored benefits, many employees may fail to see the value of voluntary benefits that they must finance themselves. For example, one perk to voluntary benefits is that purchasing insurance through an employer group is often cheaper than buying individually, yet research shows that few employees are aware of this. Also, when promoting your voluntary benefit options, discuss the benefits of having coverage (and the risks of going without) and emphasize the convenience of purchasing through the company and paying through payroll deductions.

Coverage Education
The second hurdle regarding voluntary benefits is that employees often do not understand their policy, which can lead to resentment toward the employer if they find themselves unprepared due to a misunderstanding. For instance, many consumers do not understand the nuances of property-casualty coverage such as auto or home insurance, which can lead to unpleasant surprises in the event of a major loss.

When offering any benefit option, employer-paid or voluntary, you should be sure your employees understand exactly how the coverage works. For many employees, this may mean starting with basic education about deductibles, premiums, limits and other general insurance knowledge. Communication materials are helpful for this, but employees may benefit more from an individual meeting with an HR representative, or having a broker or insurance specialist come give a presentation.

What’s In It For The Employer?
Helping employees understand their benefits completely can be very advantageous for the company. In addition to boosting participation in your voluntary benefits programs, providing this meaningful education can position the company as a valuable source of knowledge and strengthen employee satisfaction and loyalty. Talk to your Ashley Group representative to learn more about employee benefit communication resources available to you.

This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.

© 2011 Zywave, Inc. All rights reserved.