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Benefits programs are being used to improve employee satisfaction, retention and performance, according to a new report from the Employee Benefit Research Institute.
The report, Expanding the Benefits Horizon: How Employers View Voluntary Offerings, reports that improving worker morale is the top-cited reason organizations offer employee benefits, as 85% of organizations say they see a positive impact on employee satisfaction as a result. Nearly three quarters of employers also see an impact on recruiting, retention and employee performance, while 70% see a positive impact on employee health.
“The report findings underscore the growing importance of voluntary benefits in the workplace. Employers are broadening the focus of their benefits beyond traditional offerings such as 401(k)s and health insurance,” said Jake Spiegel, senior research associate, EBRI. “Additionally, the research indicates that employers are expanding their focus from simply helping workers retire to providing protection for their financial wellbeing against health care costs, high costs of living, daily expenses and the impacts of financial-related stress. Voluntary benefits can play a critical role in helping workers flexibly address these issues, as its nature allows employees to select coverages aligning with their unique circumstances and priorities.”
Seventy-three percent of employers say health care costs are one of the top issues faced by employees that their benefits seek to address. While 93% offer medical insurance, 83% offer dental insurance and 80% offer vision insurance, supplemental health insurance coverage is less commonly included in a benefits program. The most commonly offered supplemental health benefit is accident insurance, but less than half (46%) offer it. Also, far fewer offer critical illness insurance (27%) or hospital indemnity insurance (25%). Only 11% offer all three of these supplemental health insurance benefits.
The report was conducted in conjunction with Lincoln Financial.
“Those companies that offer [supplemental benefits] broadly believe that these supplemental health benefits provide affordable protection, and frequently allay employer concerns such as increased absenteeism, lower productivity and higher turnover,” said Sharon Scanlon, senior vice president, Group Protection Product, Workplace Solutions Marketing and Customer Experience, Lincoln Financial. “Employees see the value, too, as evidenced by higher-than-expected enrollment rates for these voluntary benefits.”
Organizations that currently offer dental, vision and supplemental health insurance indicate health care costs would be higher and productivity would be lower, if they did not offer these benefits. Employers broadly agree that voluntary benefits ease employee concerns, help workers weather out-of-pocket expenditures and are affordable for workers and their families.
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