MetLife's ninth annual "Study of Employee Benefit Trends: A Blueprint for the New Benefits Economy" highlights a disconnect between employers and employees about voluntary benefits. Only about 43% of employers believed their employees wanted a broader array of voluntary benefits, while 52% of employees said they did want more options.
Employees across age groups are increasingly recognizing the cost, choice, convenience, and other advantages voluntary benefits can offer. For additional context on offering voluntary options within a benefits package, see The Importance of Voluntary Benefits in Employee Packages.
Generational interest in voluntary benefits
- Gen Y (ages 21–29) — 63% say buying voluntary benefits through the workplace saves time and is convenient, 64% say comparable products cost more outside the workplace, and 57% are more likely to opt for benefits that meet personal needs.
- Gen X (ages 30–45) — 67% say it saves time and is convenient, 66% say comparable products cost more, and 66% are more likely to choose benefits that meet personal needs.
- Younger boomers (ages 45–54) — 64% say it saves time and is convenient, 62% say comparable products cost more, and 59% are more likely to choose benefits that meet personal needs.
- Older boomers (ages 55–65) — 68% say it saves time and is convenient, 66% say comparable products cost more, and 61% are more likely to choose benefits that meet personal needs.
The research showed how important choice and needs alignment are for employees. Many want to personalize their benefits even if doing so increases their cost, with roughly 30–41% across groups saying it is extremely important to have benefits that meet their specific needs.
Choice also boosted employee loyalty, especially among younger workers. Retirement benefits were a strong driver of loyalty for many, while non-medical voluntary benefits such as life insurance, disability, and dental coverage also influenced loyalty for a large share of employees. Employers can learn more about connecting voluntary benefits with wellness and engagement by reviewing Voluntary Benefits and Workplace Wellness.
Employees who report dissatisfaction with their benefits are much less likely to feel loyal to their employer. The study notes a marked decline in overall reported loyalty compared with earlier years, and more than a third of surveyed employees said they planned to work for a different employer within the year.
Employers should note that benefits satisfaction strengthens loyalty and supports retention, while eroded loyalty undermines those efforts. To use benefits effectively as a retention tool, employers should evaluate offerings holistically and consider workforce demographics and broader changes in health and financial landscapes.
Retention tips
- Understand employee loyalty drivers.
- Understand how different age groups uniquely value benefits.
- Consider how near‑term trends could change how employees view benefits and loyalty.
- Give more attention to non-medical benefits, especially voluntary options.
- Examine benefit communication content for clarity and improvement.
- Make wellness program additions, such as a financial wellness element.
- Encourage younger employees to save for retirement.
If you want personalized help reviewing benefit options and their potential impact on retention, you can talk to an agent about available voluntary benefit solutions.
Frequently Asked Questions
How do voluntary benefits differ from core benefits?
Voluntary benefits are typically employee-paid options offered through the workplace that complement core employer-paid benefits, providing extra protection or services tailored to individual needs.
Why do employees value choice in benefits?
Choice lets employees tailor coverage to personal circumstances, which can improve perceived value and increase loyalty even when some options cost more.
Which voluntary benefits most influence employee loyalty?
Retirement savings options and non-medical protections like life, disability, and dental benefits are commonly cited as loyalty drivers.
What is one first step employers can take to improve benefits satisfaction?
Survey employees to identify which benefits they value most and then review communications and voluntary offerings to better align with those priorities.