Voluntary benefit plans are purchased by employees to complement their current health needs. They are normally employee paid. Companies are able to provide their employees with a cost effective way of increasing benefits and reward packages. It is also an effective retention tool used by employers to increase new candidate interest during the onboarding process. By offering an increased variety of company paid and voluntary benefits, an employer increases the ability for employees to choose a more customized insurance package that fits their individual needs.
Voluntary benefits are often used as a recruiting tool and assist in making an employer more favorable to a potential candidate. Employers often offer voluntary benefits alongside their core benefits package. Employers must provide educational materials on voluntary benefits to ensure that employees understand and utilize these benefits. They must actively work to promote these plans to ensure employee engagement.
Voluntary benefit plans offer different options for employees consisting of financial planning, prepaid legal services, as well as mental health programs. These benefits often increase employee wellness, productivity, and retention. The most popular voluntary benefit plans are life and short-term disability insurance. More companies are offering unique voluntary benefits to attract younger candidates to their organization. These plans include Student Loan Assistance programs, ID Theft protection plans, and various Discount Fitness Programs. Most companies offer a mixture of traditional and non-traditional benefits to attract different types of talent. Some of these additional plans include pet insurance, long-term care, hospital, limited medical, and education training programs.