The Business Case for Employee Voluntary Benefits

It all seemed so simple at the time. The hope was that once we emerged from the global pandemic, the staff shortages that had plagued the western world would be a thing of the past, and the employment market would return to its old self. 

And yet we're now halfway through 2023, and that still hasn't happened. 

That's because the rise of inflation is actually making people more likely to quit and find a better paying job. In a recent study by Bankrate, one-third of respondents were concerned about job security, and yet nearly half of these people said they plan to quit their jobs in the next 12 months. 

So how can companies attract and retain the best talent in the current environment?

At a time of high inflation, the most obvious response is to raise salaries. But that's not always practical.

So the next important item on most people's want-list is employee benefits. That's why YuLife enables companies to offer employees benefits such as life insurance, disability insurance, dental insurance and vision insurance.

But that said, everyone has different needs. And so companies that want to go the extra mile can enhance their benefit offering even more by offering voluntary benefits too. 

What are voluntary benefits?

Voluntary benefits, a.k.a supplemental or ancillary benefits, are additional coverages that employees can choose to purchase to enhance their overall benefits package. These benefits are often paid for by the employee through payroll deductions; alternatively, some employers may offer to subsidize their cost.

Why would employees want this rather than just buying private insurance themselves? Well, to start, it will probably cost them less. Group insurance generally brings economies of scale and competitive pricing that isn't readily available to individuals. 

There's also a more mundane issue: the fact that the company manages the scheme removes the hassle of getting quotes, comparing different schemes and filling in endless online forms, which in practice means many people just never get around to it. The fact that the voluntary insurance options are organized by their employer also means the employee has an added layer of protection and assistance if ever there's a dispute over an insurance claim. 

So how do voluntary employee benefits work with YuLife, specifically?

Focus on flexibility

At YuLife, the emphasis is on flexibility, because every business is different and so the amount of subsidy will vary. 

YuLife recognizes that budgets vary from organization to organization, so we give employers the choice of offering different levels of coverage for their employees. If individuals have specific needs that aren't covered by the company plan, they aren't left wanting. Because employers also have the option of allowing staff to upgrade their own plans individually, to a level of coverage that suits them best.

Offering voluntary benefits in this way is obviously great for employees. But how does it help the company as a whole? Here are five ways that voluntary benefits can help boost a business's performance, and ultimately its bottom line.

1. Enhanced employee wellbeing 

Employee wellbeing is a crucial element in an organization's success. Poor mental and physical health can lead to illness and absence, reducing the overall productivity and morale of staff left to pick up the slack.

Conversely, a workforce that enjoys good mental and physical health will be more productive, efficient and high-performing.

That's why employee benefits such as life insurance and critical illness insurance are so important. Because when employees know they're covered if the worst happens, it helps to relieve day-to-day stress and improve people's moods overall. Add in voluntary benefits – which by their very nature cover the things people are most concerned about – and that lift in wellbeing becomes all the more profound.

2. A feeling of worth 

Rather than just a standardized, one-size-fits-all approach, voluntary benefits allow employees to tailor their benefits to align with their individual circumstances. This customization empowers workers to select the benefits that matter most to them, ensuring they feel properly supported by their employer. 

And the importance of this can't be underplayed. After all, every human being likes to feel valued: that they're not just a cog in a machine, but someone the organization actually cares about. And so offering voluntary benefits to your staff can be a big help in creating that positive feeling.

3. Competitive advantage

As we mentioned earlier, attracting and retaining talented individuals in today's job market is highly competitive. Offering voluntary employee benefits can give employers a competitive edge by differentiating themselves from other recruiters.

By providing a comprehensive suite of employer-sponsored and voluntary benefits, companies both enhance their overall compensation package and showcase their commitment to employee wellbeing. That can make a big difference in attracting the top candidates and stealing them from under the noses of rival companies.

4. A cost-effective solution 

Voluntary benefits are typically cost-effective for both employers and employees. Since these benefits are typically employee-funded, employers can expand their benefits offerings without incurring significant expenses. 

Conversely, because of economies of scale and the superior negotiating power of the company, employees gain access to valuable services at discounted rates, which they might not be able to obtain individually. This cost-sharing model allows companies to enhance their benefits offerings without straining their budgets.

5. Increased employee engagement

Voluntary benefits contribute to employee engagement by fostering a positive work environment and promoting a sense of belonging. And engaged employees are generally more likely to be productive, loyal, and committed to a company's success. 

This is enhanced further when a company signs up with YuLife, as all employees get access to the YuLife app. This provides a number of extra benefits in the day-to-day, including the ability to earn YuCoin rewards by doing regular exercise or meditation tasks. The app also acts as a central hub for accessing information on company benefits, as well as channeling details of company-specific wellness campaigns.

In conclusion, voluntary benefits play a crucial role in creating a comprehensive and attractive employee benefits package. By providing employees with a range of customizable options, companies can enhance employee well-being, differentiate themselves in a competitive job market, and foster a culture of engagement.