Though long dismissed as “something nice to offer,” a growing share of U.S. employers now see voluntary benefits as an integral component of their core employee benefit strategy, and are expanding the range of voluntary benefits and services they offer to help workers improve their overall financial well-being and security, the results of a survey released on April 10 by human resources consultancy Willis Towers Watson indicate.
Conducted in November 2017, the survey includes responses from 336 U.S. employers representing more than 4.3 million employees and a wide range of industries. The survey showed that just 5% of the employers polled say voluntary benefits have little importance to their employee value proposition and total rewards strategy. Researchers noted that this finding represents a considerable shift in attitudes from five years ago, when 41% of the employers surveyed said voluntary benefits have little importance.
The findings also indicated that while just 36% of respondents see voluntary benefits as an important component of their current employee value proposition, more than two-thirds (69%) believe voluntary benefits will become an important component of their employee value proposition within three to five years.
Moreover, the survey showed that education benefits that address rising student loan debts and support parents saving for their children’s future college cost are becoming increasingly important financial well-being benefits. While 8% of the employers surveyed said they currently offer student loan consolidation programs, 34% expect to have such programs by 2021. Similarly, whereas 10% of respondents said they currently offer student loan refinancing arrangements, 35% anticipate providing such arrangements by 2021.
When asked about other voluntary benefits they currently offer and might offer within the next three to five years, 36% of respondents said they currently provide identify theft protection, and 63% said they anticipate offering it by 2021; and 34% of respondents reported that they currently offer pet insurance, and 57% said they expect to offer it by 2021.
The survey also showed that growing shares of employers are offering health care-related voluntary benefits. For example, 16% of respondents said they currently provide long-term care insurance, and 33% said they expect to offer it by 2021; 43% of respondents reported that they currently offer critical-illness insurance, and 71% said they anticipate providing it by 2021; and 24% of respondents indicated that they currently offer hospital indemnity, and 50% said they anticipate offering it by 2021.
From Benefit Trends Newsletter, Volume 61, Issue 5
The information contained in this newsletter is for general use, and while we believe all information to be reliable and accurate, it is important to remember individual situations may be entirely different. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. This newsletter is written and published by Liberty Publishing, Inc., Beverly, MA. Copyright © 2018 Liberty Publishing, Inc. All rights reserved.