As business owners struggle to afford medical and prescription coverage, other desirable, non-medical benefits, such as dental and disability insurance, are often overlooked. One way for small and medium-size business owners to bolster their benefit programs without incurring additional costs is to offer voluntary benefits.
Voluntary benefits are employer-sponsored benefits sold to employees at the worksite.
Typically, premiums are collected by the employer via payroll deductions and then remitted to the insurance carrier as a single, lump sum payment. Once available to only the largest employers, voluntary benefits today are often purchased by groups with as few as ten enrollees. Voluntary benefits are becoming increasingly popular because they offer advantages to both employers and employees. For employers, voluntary benefits can help level the playing field when competing with larger companies for talented employees. A recent survey by World at Work, in collaboration with the Employee Benefits Research Institute, concluded that benefits are often a deciding factor in an individual s decision to take a job.