What Every Business Owner Should Know About Voluntary Benefits
Some speak out about a simple decision that is often difficult to make
If you had provided voluntary benefits options to your employees, you would have built trust and loyalty, your employees would have felt safe knowing you were looking out for them. This safe culture would have led to stable, productive and safe 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 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 continued to build his team by selectively recommending to his new boss the hiring of his former co-workers.
Of course, the company tried to adapt by switching to a 1099 from a W-2, hiring subcontractors but without a solid vetting process, the change was unsuccessful and the company went out of business in 2007. The management core that allowed it to grow to an 11 million dollar revenue company in 3 years was gone. The brand perception of a company that didn’t care about its employees had taken hold.
I believe in the value of the voluntary benefit insurance business and look forward to every opportunity to get in and relate this experience to business owners.”
Who benefits? Both employers and employees benefit. The employer benefits through increased employee satisfaction and retention through better benefits programs, at little or no financial cost to your company. Employees benefit through the ability to tailor an affordable benefits package to protect their earnings from unexpected costs associated with illness or injury.
What should employers do? Give employees the option to make informed decisions about protecting their income. Because employees are increasingly involved in their care. In truth, when many employers are asked about employee benefits, their first reaction is often, “I’m ready,” but are they really? If your employees are not, as you think you are, it is because you have not given them a choice.
Why should employers do it? Your employees want it. A 2013 study highlighted that 64 percent of employees want their employer to provide a broader range of voluntary benefits that they can choose to purchase. Some really need it and will happily pay for it because of the peace of mind it brings. Again, this at no cost to the employer’s operating budget.
How should entrepreneurs do it? Create the environment where employees feel free to exercise this choice. Also, provide a welcoming and private environment for this transfer of information between the employee and the benefits provider to take place.
Where should this happen? It is preferred that this be done through the company’s group option (payroll deduction) where employees are guaranteed cost savings of up to 35 percent, making the cost of most products is less than one dollar per day.
When must an employer do this? There is rarely a better time than now.
In short, the who, what, why, how, where and when of voluntary benefits. The ball is in the hands of the boss, play well and you will be the winner (in short).