As far as attracting highly qualified new employees and retaining current staff, most employers understand the importance of offering a properly designed benefits package. Whether you offer a core benefits package or voluntary supplemental benefits, those offerings need to be accepted and used by employees to deliver value.
The needs of modern workers differ from past generations. Households with two working parents, single-parent households, an older workforce and employees caring for aging relatives mean many workers want benefits they can customize rather than a one-size-fits-all package. Employers have also shifted more financial responsibility to employees for coverages once paid fully by employers, which makes supplemental options more important.
In today's market there are many voluntary benefit products available, so reviewing industry trends can help predict which offerings your workforce may prefer. For general background on supplemental options, see Understanding Supplemental Health Insurance.
Industry trends
- According to a UnumProvident buyers study, women purchase more supplemental policies than men; the study reported that disability and critical illness policies were purchased more frequently by women, and people aged 30–49 were the most frequent buyers of supplemental products.
- A survey by Aon Consultants found disability coverage is the most frequently purchased voluntary benefit across all age groups, with life insurance policies the second most common supplemental purchase.
- A LifePlans Inc. study for the Health Insurance Association of America found that employees who enroll in employer long-term care plans tend to be between about 40 and 55 years old, have higher education levels, and have greater income and assets.
Evaluating industry data gives a useful starting point, but your best insight comes from understanding the specific demographics and needs of your workforce. Speak with employees or survey them to identify interest in specific voluntary benefits, and consider any recent changes to your core benefits that could create new needs.
When selecting a vendor, look for timely and accurate claim payments, strong customer service, and clear communications materials so employees can get answers directly from the vendor rather than relying on HR. For a broader discussion of how voluntary benefits fit into overall employee packages, review The Importance of Voluntary Benefits in Employee Packages.
Start by surveying employees and reviewing workplace demographics, then compare vendor service, cost, and enrollment flexibility. If you need to review options or enroll employees, you can talk to an agent to get personalized guidance.
Most employers find that the right mix of supplemental benefits and the right vendor can be a valuable complement to their core benefit offerings.
Frequently Asked Questions
What are voluntary or supplemental benefits?
Voluntary benefits are employer-offered coverages that employees can choose and often pay for through payroll deductions, such as disability, critical illness, or supplemental life insurance.
Who typically buys supplemental benefits?
Studies show adults aged roughly 30–49 are among the most frequent buyers, and women purchase certain supplemental policies at higher rates than men.
How should employers decide which voluntary benefits to offer?
Use workplace demographic data and employee surveys to identify needs, then compare vendors on claims handling, customer service, and communication materials.
Can voluntary benefits replace core employer-provided coverage?
No; voluntary benefits are meant to complement core benefits, not replace essential employer-provided coverage like primary health insurance or required employer contributions.