What Every Business Owner Ought To Know About Voluntary Benefits
Some Plain Talk About A Simple Decision That Is Often Difficult to Make
If he had provided voluntary benefit options to his employees, he would have fostered trust and loyalty, his employees would have felt safe in the knowledge that he was looking out for them. This safe culture would have lead to stable, productive, confident teams, where everyone felt they belonged.”
They left, some for lower paying jobs that provided voluntary benefits.
The first notable defection was a talented project manager who left to take on a maintenance supervisor position at a nearby property management company. He had to leave to find better ways to protect the financial well being of his family. He went on to build his team by selectively recommending to his new boss the hiring away of his former co-workers.
Of course, the company tried to adjust by switching to a 1099 model from a W-2 model, hiring subcontractors but without a solid vetting process, the switch was not successful the company folded in 2007. The management nucleus that enabled it to grow to an 11 million dollar revenue company in 3 years was gone. The branding perception of a company that did not care about its employees had taken hold.
I believe in the value of the voluntary benefits insurance business and seek every opportunity to go in and relate this experience to business owners.”
Who benefits? Both employer and employees benefit. The employer benefits through greater employees satisfaction and retention through improved benefit programs, this, at little or no financial cost to his company. The employees benefit through the ability to custom design an affordable benefits package to protect their income from unexpected costs associated with illness or injury.
What must employers do? Provide employees the option to make informed decisions about protecting their income. For, employees are increasingly more invested in their care. In truth, many employers when asked about employees benefits their first reaction often is, “I’m all set,” but are they really? If your employees are not, as you believe you are, it is because you have not given them the choice.
Why must employers do it? Your employees want it. A 2013 study highlighted that 64 percent of employees want their employer to provide a wider array of voluntary benefits that they can choose to purchase. Some actually need it and will happily pay for it because of the peace of mind it engendered. Again, this at no cost to the employer’s operating budget.
How must employers do it? Create the environment where employees feel free to exercise this choice. Further, facilitate a welcoming and private setting for this information transfer to take place between the employee and the benefits provider.
Where should this happen? It is preferred that this takes place through the company’s group option (payroll deduction) where employees are guaranteed a cost saving of up to 35 percent, rendering the cost of most products at less than a dollar per day.
When must an employer do this? There is rarely a better time than now.
All in all, the who, what, why, how, where and when on voluntary benefits. The ball is in the employer’s hands, play it well and you will be the winner (in-a-nutshell).