Benefits May Set You Apart from Competitors

Posted by on October 5, 2009 · Leave a Comment 

With so much competition in the workplace, it is getting harder and harder to keep employees loyal and coming back each day. Compensation packages are a huge factor in where an employee chooses to work and employee benefits are an important component of any compensation package. The problem for small business employers? Try the increasingly heavy burden of rising Major Medical premiums. In the state of Florida alone, an employer is required to contribute 50 percent of the employee-only medical premium for an eligible employee that signs up for the plan. Considering that the average cost for employee-only coverage for small business medical plans runs approximately $250 – $350 per month and this expense becomes a hefty financial burden for employers. So how do you offer a well rounded employee benefit package if all your dollars are going into the medical plan? The answer – Voluntary Benefits.

Although Voluntary Benefits of one sort or another have been available in the marketplace for more than a decade, many employers have not taken full advantage of them as an efficient way to round out employee benefit packages and attract new employees with them. A Voluntary Benefit is simply an insurance product outside of the Major Medical that is sponsored by an employer and offered at a group rate to the employees. Any employee who takes a Voluntary Product is responsible for the full premium amount of that product, but the employer can deduct those premiums from the employee’s paycheck and pay them on behalf of the employee. Examples of traditional Voluntary Benefits include Mini-Medical Plans, Dental Plans, Vision Plans, Life Insurance Plans, Disability Plans, Cancer Plans, Accident Plan, and Hospital Indemnity Plans to name a few. Some non-traditional Voluntary Benefit products include Work Life Benefit Plans, Funeral Plans, College Savings Plans, Legal Benefit Plans and even Wedding Benefit Plans.

Can adding a voluntary benefit portfolio to your employee benefit compensation package really help your business? Yes, of course. The obvious way is that because the employees pay most of or all of your premium costs, then Voluntary Benefits are an easy way to add value for your employees without costing the company any money. But more importantly are the intangible benefits that you get as the employer. For instance, a more comprehensive benefit offering helps boost the confidence the employee has that you care about his/her wellbeing. This increases employee loyalty to the company and could reduce turnover. Plus it is a great way to attract and retain the best employees available. Not to mention, if an employee has the ability to access claim moneys from an insurance product they are enrolled in, then it reduces the chances of workman comp claims and even workman comp claim fraud.

So, by now you may be wondering, “How do I implement a Voluntary Benefit portfolio into my business or how do I find out more?” That’s easy. Most insurance products can be offered through and by insurance agents, insurance brokers or employee benefit consultants. There are lots of them out there so take some time and find the right relationship that works for you and your employees. All insurance agents/brokers/consultants are not created equal so make sure you test them for knowledge of your business and industry. A great find would be an agent/broker/consultant that has knowledge and leverage in the insurance marketplace and is willing to be held accountable for the results they bring to the table. They should be willing to assist you with customer service, billing and claim issues plus enrollments for new hires and at annual plan renewal. Most importantly, when you enter into a relationship with an insurance agent/broker/consultant for health insurance or Voluntary Benefits or any other type of benefits for that matter, you are entering into a business “relationship” and one that should last a long time.

No matter whether you choose to add a full Voluntary Benefits portfolio to your business or just one or two to supplement the medical, remember that it is all about the employees. They are the true asset for any successful company and their loyalty to you and your company will always equal higher productivity and that leads to something all businesses love – higher profits!

Filed under Human Resources