In a broker survey, this is their primary target for voluntary worksite benefits
| Fewer than 100 employees | 78% |
| 100-999 | 17% |
| 1,000 or more employees | 3% |
| Don't know | 2% |
Source Eastbride Consulting Inc. “Producer Attitude Scoreboard Service”
Four key advantages employers gain with voluntary benefits:
- Better management of their benefits costs. For example, employers can offer lower-priced, high-deductible health plans and provide voluntary insurance to help cover the higher deductibles.
- Lower payroll taxes. As an added bonus, offering voluntary benefits that qualify for pretaxing can lower taxes with each enrolled employee.
- Time and money savings. Implementing a comprehensive benefits communication and enrollment program can help HR departments preserve precious time and budget resources.
- Employee satisfaction. Offering voluntary benefits also provides a great incentive for workers to stay with their employers. Employees can receive more benefits with no direct cost to the employer. The employer is also helping employees protect their health, savings and everything they’ve worked so hard to achieve,
A recent Unum study revealed that companies with voluntary benefits were 53% more satisfied with their benefits packages as compared to 34% in companies without voluntary benefits.
Brokers can expect to realize these benefits:
- A reliable new revenue stream. About 40% of employees will purchase a voluntary product when enrollment includes one-to-one meetings. Each employee in an account could potentially represent $60 or more in commissions. Even more can be earned with bonuses and renewals.
- Stronger relationships with group benefit clients. Brokers can provide their clients with a way to enhance their existing benefits package at little or no cost while helping meet their employee’s needs. Brokers also can bring a lot of value-added services at no added cost. This helps position brokers as full benefits providers, which mean clients won’t have to look elsewhere to meet their needs.
- Quick ramp-up without additional overhead. Brokers don’t have to become experts in voluntary benefits or invest any additional overhead if they partner with an experienced benefit carrier. A full-service voluntary carrier, for example, has proven enrollment systems and benefits communication processes in place, ready to go the minute they’re engaged.