Voluntary Benefits Explode in Popularity

As our national economy continues to slip into recession, employers are beginning to scale back on health benefits in an effort to maintain their bottom line. As employers reduce their health benefits many are adding new, voluntary-based benefits for their employees. Voluntary benefits are traditionally offered in addition to benefits that are partially paid by the employer, but as the recession puts a squeeze on employers many are favoring the voluntary benefits to save money.

Voluntary benefits are also popular with employees. They offer many of the same advantages of employer-paid benefits such as streamlined administration and lower prices that are not available with consumer based products. Also, because payroll deductions for benefits are taken out before taxes, the cost of the benefit is reduced even further below the cost of comparable consumer based plans.

Increasingly, employers are also finding that offering voluntary benefits may aid with retention of current employees and recruitment of new employees. Employers are offering voluntary benefits ranging from traditional plans like accident, life, home, and auto coverage as well as new plans that offer shopping discounts, identity theft programs, wedding protection, and group legal plans.

If you would be interested in offering voluntary benefits to your employees, give us a call and we will design a package for you.

Source

http://www.kiplinger.com/businessresource/summary/archive/2008/benefits_HealthPlanWeek.html