Health insurance alone isn’t going to cut it for today’s diverse workforce comprised of Baby Boomers, Generation X, Millennials and Generation Z. To help fill the gaps in coverage, voluntary benefits provide a viable solution for Brokers and their Groups with multi-generational workforces.
Advantages of Offering Voluntary Benefits
There are several advantages for Employers and Brokers when it comes to voluntary benefits.
Between rising healthcare expenses and a tightening labor market, Employers are looking for ways to enhance their Employee benefit offerings at a low cost to attract and recruit top talent for their organization. In contrast to health insurance premiums, of which Employers usually pay a significant portion, voluntary benefits require minimal effort to implement and are paid for mostly or fully by Employees via payroll deductions. Due to the low cost, Aflac reports that the majority of Employers are boosting voluntary benefits to combat rising medical costs. Many voluntary benefits also offer guaranteed acceptance at a lower rate than medical benefits, so even if a small Group chooses a particular benefit, they’ll still be covered.
In addition to low cost, voluntary benefits can yield a high reward for Employers. One of the biggest perks research has shown is that offering voluntary benefits can improve Employee recruitment and retention. According to Employee Benefit Research Institute, 82 percent of Employees who ranked their benefits satisfaction as extremely or very high also ranked job satisfaction as extremely or very high. Meanwhile Randstad found that 55 percent of Employees have left jobs for better benefits elsewhere. By offering the benefits Employees want, Employers can create a better workplace culture and avoid the added expenses of turnover.
For Brokers, voluntary benefits can increase revenue as well as improve client relationships. By expanding their insurance offerings, Brokers can tack on an additional revenue stream by cross-selling insurance to clients.
To further increase revenue, offering Groups more of the benefits they’re looking for can help Brokers create long-lasting relationships with clients. According to Gartner, 80 percent of a business’ future revenue will come from 20 percent of its existing customers. As Employers continue to look for ways to combat healthcare costs while improving Employee recruitment and retention, offering voluntary benefits to Groups will help them reach their goals.
Voluntary Benefits Enrollment Software
While there are many advantages to offering voluntary benefits, Brokers will need the right technology to streamline and simplify the benefits enrollment process for their Groups. Whether it’s health insurance, dental, vision or other ancillary benefits, FormFire allows Brokers to quote, sell and enroll from one platform, making the cross-selling and benefits election processes much easier. Contact FormFire today to learn more or to request a free demo.