What are Voluntary and Lifestyle Benefits

Voluntary benefits are a type of benefit that allows employees to purchase additional coverage beyond traditional health insurance for themselves and their families at their own cost. These voluntary benefits often include life insurance, disability insurance, and accidental death and dismemberment insurance, supplemental health care plans, and other financial products such as long-term care insurance. 

Along with more traditional voluntary offerings are ‘lifestyle’ benefits. These benefits are becoming increasingly popular as employees seek more personalized and holistic support from their employers. These voluntary benefits go beyond traditional perks like health insurance and retirement plans, and instead provide additional resources and tools to help employees manage their lives both in and outside of the workplace. 

Pet insurance, mental health support, fitness reimbursement, tuition support, wealth management, and disease management are just a few examples of lifestyle voluntary benefits that are gaining traction. Employers are recognizing the value of offering these benefits to attract and retain top talent, as well as improve overall employee wellbeing and job satisfaction. By addressing employees’ unique needs and interests, lifestyle voluntary benefits demonstrate a commitment to creating a supportive and inclusive workplace culture that values individuality and work-life balance. 

Voluntary benefits of any sort also serve as an important way for employers to make their employees feel appreciated and supported in their roles. These benefits can help improve employee engagement, morale, and loyalty while also helping employers attract and retain talented workers. 

Advantages of voluntary benefits for employers 

Employers that offer voluntary benefits often benefit from increased employee satisfaction, improved loyalty and morale, and higher productivity. They’ve also become an expectation for some workers. Consider that 62 percent of employees under 50 wouldn’t consider working for a company that didn’t offer voluntary benefits and it becomes clear that these are important coverages to offer. 

One of the most significant advantages and financially sound reasons for employers to offer voluntary benefits is improved employee retention and satisfaction. In fact, in 2022, 76 percent of employees reported that voluntary benefits were a deciding factor when it came to staying or leaving — an increase from 68% in 2020. Not to mention, when you provide additional coverage options outside of regular health insurance plans, you demonstrate to your employees that they are valuable assets to the organization. 

This recognition can be a powerful incentive for employees to remain with the organization, particularly if the benefits offered are tailored to meet their individual needs and interests. Additionally, by providing your staff with attractive benefits packages, organizations can also foster a sense of loyalty among their staff members which in turn can lead to higher job satisfaction levels. 

The importance of voluntary benefits to employees 

Voluntary benefits can be incredibly important to employees and can make a huge impact on their overall job satisfaction. While these benefits are not typically offered as part of an employer’s core package, they can make a big difference in the lives of workers, including in these areas: 

• Increased financial security and peace of mind: By offering voluntary benefits to their employees, employers provide them with an opportunity to increase their financial security and peace of mind. For example, life insurance and disability insurance provide employees with a financial cushion if something unexpected were to happen. 
• Improved physical and mental health: By providing access to health and wellness resources, employers can empower their employees to take responsibility for their own wellbeing. This could include offering discounts on gym memberships or other physical activities and programs. It might involve providing information about healthy eating habits, hosting seminars about stress management or financial literacy, or even offering on-site flu shots or health screenings. By investing in the personal health of your employees, employers are also investing in the success of your business. 
• Enhanced work-life balance and overall well-being: Anytime you can provide additional support and resources to your employees, it’s a positive. For instance, in today’s competitive job market, offering options to work remotely or in a hybrid setting while ensuring employees have the necessary tools they need to do so will help create a desirable balance between work and home.