Voluntary Benefits
Quick Guide to Voluntary Benefits
Definition: Voluntary benefits, employer-offered yet employee-funded services, bridge gaps in traditional benefits without direct costs for employers.
Examples:
- Health: Critical illness, accident insurance, telehealth.
- Dental: Sealants, crowns, dentures.
- Vision: Glasses, contact lenses.
- Wellness: Gym memberships, legal services.
- Financial: Planning, tax help, investment advice.
- Security: Life insurance, identity theft protection.
- Miscellaneous: Flexible work hours, pet insurance.
Importance: Win-win, enhancing insurance coverage, easing costs, aiding recruitment, and boosting productivity.
Advantages:
- Employer benefits: Attract and retain employees, low or no direct costs, enhance competitiveness.
- Employee advantages: Discounted services, vetted providers, flexible coverage, financial safety net.
Limitations: Considerations include minimum staff requirements, eligibility through the employer, and age/exclusion limits.
Determination: Identify HR objectives, assess value for demographics, fulfill legal obligations, ensure buy-in, stay informed.
Streamlining: Leverage insurance/benefits brokers or specialized software for efficient administration.