Healthcare costs are climbing. The impact of the Affordable Care Act has yet to take shape, and high deductible plans are creating gaps in coverage. People are worried. In fact, when discussing critical illness, 47 percent of employees listed “financial burden” as a more frightening prospect than death.
And yet, amidst the turmoil, more and more employees are demanding add-on healthcare options — at no extra cost to their employers.
Voluntary benefits allow your employees to add to their standard healthcare plans with options tailored to meet their individual and family needs. The cost of coverage is usually deducted from payroll, and benefit options can include dental, vision, life insurance, long- or short-term disability, accident insurance, critical illness, cancer coverage, pet care, and legal plans.
It’s not hard to see why the demand for voluntary benefits is skyrocketing. They empower employees with access to a broader range of options and put them in charge of customizing the package. Not only that, but because they’re the ones paying into the program, employees can often take their paid voluntary benefits with them when they change companies. It’s an appealing source of security in a shifting landscape.
The benefits and challenges for leadership
If you’re thinking voluntary benefits would be nice to have, but they don’t qualify as a top priority for your startup, think again. Your employees’ satisfaction with their medical coverage can impact everything from team morale to employee turnover.
In fact, 44 percent of employees stated that they’d be more likely to retain their current positions if offered an improved healthcare package. And 90 percent believe that companies providing voluntary benefits do a good job balancing the needs of their staff with their tightening budgets.
These benefits can be a great way to demonstrate a real commitment to your staff’s health and well-being, but as you know, introducing any change to a system as bureaucratic as healthcare can be a challenge. You might find resistance from your staff if:
- Employees perceive the cost of added benefits as a burden (to be paid on top of existing monthly premiums).
- You have lots of Millennials on staff, who tend to be less informed about the nuances of insurance and long-term saving.
- You elect not to cover a specific voluntary option your team demands.
Because employee receptivity will largely determine the success of a voluntary benefits program, smooth implementation depends on education and easy access.
How to make voluntary benefits a smashing success
Changes to employee benefits can create tension in any company. Employees may not immediately understand that voluntary benefits are giving them more options, rather than taking away from their existing coverage.
Giving your staff a clear understanding of their options is the best way to help them become comfortable with changes to their benefits package. If you have an insurance broker, have the company send a representative to conduct an informational session during lunch. It’s critical to give your employees an opportunity to voice their question and concerns.
Technology also plays a vital role in adoption and satisfaction. Any good voluntary carrier is able to accept virtual enrollment, and you need to make the process as seamless as possible from your end. Invest in an easy-to-use benefits administration system, which will also help minimize barriers to engagement for your younger, tech-savvy employees.
Not only do voluntary benefits boost morale and retention, but customized plans also lead to healthier, more productive employees in the long run. It’s a win for everyone. The sooner you deliver, the sooner you’ll see results.