Today’s benefits brokers have access to a diverse selection of voluntary benefits that give clients the ability to increase employee retention and attraction. Having multiple options can be beneficial, but it can also be overwhelming, especially when trying to put together a desirable package that is also competitively priced. 

Are Voluntary Benefits Worth It? 

A critical question to start with is, are voluntary benefits truly beneficial and desirable? Studies indicate that nearly 70% of eligible employees are more willing to work with a company that offers employee-paid voluntary benefits. Some of the fastest-growing sectors are those related to critical illness care, identity theft protections, legal benefits, and pet benefits policies.  

One 2024 study reveals that 91% of employees believe benefits packages are critical to their decision to take a job, yet less than half said they were satisfied with their current employee benefits package.  

Based on these trends, brokers looking to secure more business can start by offering robust voluntary benefits options. Employees want and need them, and employers who want to remain competitive in the job market know they must offer them. 

Overcoming the Challenges of Voluntary Benefits in Today’s Competitive Work Environment 

While many solutions exist to create exciting benefits packages, it’s important to carefully consider which offer the most advantages for a greater return on investment.  The benefits landscape has changed, and it’s vital to keep up with ever-changing demands in order to stay competitive. 

Read on for essential insights into some the newest and most-effective solutions and opportunities. 

Voluntary Benefits Must Be Relevant 

The ultimate deciding factor comes down to relevance, not just cost. Today, voluntary benefits are a core component in most job offers, often defining recruitment packages in an effort to attract top talent. While traditional employee benefits, such as health insurance and 401(k)s, will never lose favor, voluntary benefits provide a way for companies to really stand out in a competitive hiring market. 

Some of the most sought-after voluntary benefits today include: 

• Legal benefits: providing access to legal services that extend beyond the workplace 
• Pet benefits: pet insurance (and alternatives to pet insurance, such as pet care discount plans) are now some of the most frequently requested benefits 
• Identification protection: the growing risk of ID theft continues to be top of mind for consumers in a digital economy  
• Tuition assistance support: to help enhance skill sets and provide continuing education  
• Disability insurance benefits: especially as employees are working later into their lives  

When it comes to any voluntary benefit, it’s important to target existing employee needs. For example, pet owners benefit from versatile pet insurance plans when they already have pets. They don’t purchase pet insurance first and then seek out a furry friend to add to their family. Pet ownership is on the way up, with 66% of households (about 86.9 million homes) now owning a pet (that’s more than have children!). For employers, that means 2 out of 3 employees own a pet and could benefit from options like pet insurance. 

ID protection is an ongoing battle for anyone who swipes a card or shops online. The FBI reports that in 2023, there were 416,582 reports of ID theft in the US. ID protection can be a critical level of protection for many employees.  

Keeping Voluntary Benefits Cost-Effective 

In the current economic landscape, competitive pricing is a must. With recent inflation and increasing operating costs for many US companies, it’s becoming harder to foot the bill for some (or all) of employee benefit costs.  

When considering employee benefits packages, companies will be looking for competitively priced solutions. Voluntary benefits need to meet real needs in employees’ lives and be priced to fit within constrained budgets.  

Health-Related Support That Goes Beyond the Basics 

Right after the pandemic, the primary focus was on providing robust policies that could meet health-specific needs. Today, there is a renewed interest in mental health benefits, especially for Millennials and Gen Z.  

This includes access to therapists and other services that improve overall employee well-being.  Stress management, for example, has grown in importance as many employees face the ongoing need to balance financially stressful lifestyles. The use of mindfulness tools can also be a way to improve quality of life beyond a traditional doctor’s appointment. 

Ease of Implementation and Use 

As benefits brokers seek more competitive options, it’s important to take a deeper look at how easy voluntary benefits are for employers to implement There are a few specific strategies that may offer help: 

• Easy to understand: Voluntary benefits should be simple for both employers and employees to understand.  The more complex they are, with various tiers and limitations, the harder they are to use (which equals limited employee engagement). 

• Virtual access: Employees and employers alike benefit from seamless communication through online enrollment platforms. 

• Simple to implement: Select voluntary benefits that are robust and effective but also easy to implement. Features to look for include: 

  • integrations with popular HRIS platforms
  • personalized administrator portals 
  • dedicated account managers 
  • knowledgeable customer service   

Diversity Your Portfolio with High ROI Voluntary Benefits 

Pet Benefit Solutions offers no-cost-to-offer pet benefits that bring greater value to your clients and increase employee engagement. As the only voluntary benefits provider specializing in both pet insurance and pet insurance alternatives, Pet Benefit Solutions leads the pack through unrivaled choice, innovative plans, and exceptional customer care. 

Contact us now to learn more.