Voluntary benefits strategy

Voluntary Benefits Strategy

Voluntary benefits — benefits employees pay for themselves at group rates through payroll deduction — are one of the most cost-effective ways to enhance a total rewards package. When designed strategically, voluntary benefits fill gaps in the core health plan, address workforce-specific needs, and differentiate the employer in the labor market at minimal cost to the employer.

Voluntary benefit categories and their value

Supplemental health

Critical illness insuranceAccident insuranceHospital indemnity insuranceCancer insurance

Fills gaps in high-deductible health plans. Particularly valuable for workforces with high HDHP enrollment.

Income protection

Short-term disabilityLong-term disabilityLife insuranceAD&D insurance

Protects employees from income loss due to illness, injury, or death. Often the most valued voluntary benefits after health insurance.

Financial wellness

Student loan repayment assistanceEmergency savings accountsFinancial planning services529 college savings plans

Addresses financial stress — a leading driver of productivity loss and voluntary turnover.

Lifestyle and wellbeing

Pet insuranceLegal servicesIdentity theft protectionCommuter benefits

Differentiates the employer in the labor market. Particularly effective for attracting younger workers.

Mental health and EAP

Employee Assistance Program (EAP)Mental health apps (Calm, Headspace)Therapy access platformsStress management programs

Addresses the leading driver of disability claims and productivity loss. Increasingly expected by employees.

Voluntary benefits selection principles

Align voluntary benefits to workforce demographics — younger workforces value student loan assistance and pet insurance; older workforces value critical illness and LTD

Prioritize benefits that fill gaps in the core health plan — supplemental health benefits are most valuable when paired with HDHPs

Evaluate utilization data annually — remove benefits with low enrollment and add benefits employees are asking for

Negotiate group rates — voluntary benefits offered through the employer should be priced better than individual market alternatives

Integrate with the benefits administration platform — employees should be able to enroll in voluntary benefits through the same system as core benefits

Communicate the value — employees often do not enroll in voluntary benefits because they do not understand them

Assess your total benefits portfolio

Use our free Total Benefits Portfolio tool to evaluate your current voluntary benefits program and identify gaps relative to your workforce demographics and competitive market.

Total Benefits Portfolio