How Voluntary Benefits Can Help Businesses With Employee Retention
The United States job market has been growing year-over-year for almost a decade, and as of last September, the unemployment rate hit a five-decade low. This is incredible news for US workers, and for the economy, and it suggests that there is a smaller number of job seekers, and a higher demand for quality workers.
As a result of this trend, companies are finding it harder to win new talent, and keep them. While many companies simply raise their wages to attract new talent, not all companies can afford to do so. In this instance, many companies are turning to boosting their benefits packages instead. This is an effective strategy for acquiring new employees, and for keeping them around long-term.
According to a 2018 Aflac WorkForces report, 55% of the 2000 employees they surveyed said they’d be willing to accept a job with lower wages in exchange for better benefits. Over a third said they’d stay in their current position if their benefits were raised.
There is a unique opportunity for brokers and agents to remind business owners and HR decision makers that an easy, low-cost way to improve their benefits package is to add voluntary insurance options, such as accident, critical illness, or short-term disability. Because the benefits are low cost, and are paid out directly to policyholders, they can be used to help cover rent or mortgages, utilities, car payments, medical deductibles, or more in the event of an illness or injury.
With almost half of employees stating that they are more likely to buy insurance after it is recommended by a professional, you can use this opportunity to your advantage. Explain to business owners that voluntary insurance can go a long way towards meeting employee needs, while adding very little, if anything, to their business costs.
They can also ensure their employees are interested in staying at the company by including these new benefits. Employers are happier because they have less turnover and are keeping talented employees on board, and employees are happy because they are getting great benefits at a low cost.
As you counsel clients, discuss how these benefits work to attract and retain employees. These business owners and representatives do not always consider how voluntary insurance can factor into employee retention, saving them money. Having this conversation with them will likely work to show them a new perspective on maintaining a well-run and well-staffed workforce, and in turn, a positive bottom line for them.