As health care benefits continue to rise, employers must seek out new ways to build benefits packages that attract and retain key employees. Many employers have turned to supplemental benefits to compensate for employee’s increasing healthcare costs and to beef up their overall compensation package.
Supplemental benefits are insurance or non-insurance products that employees can pick and choose from for elective purchase. They offer the convenience of a payroll deduction while allowing employees to access products at reduced group rates that they would not receive if they shopped for benefits as an individual. In addition, supplemental benefits can boost work-life balance and shelter employees from the financial burden of a serious illness or accident.
Employees agree that supplemental benefits are important. In a study conducted by Harris Interactive in 2014, 65% of employees say it’s important that their employer offer supplemental benefits. However, in another study conducted by LIMRA six out of ten employers with less than one hundred employees are unfamiliar with supplemental benefits. Large employers know the secret and have been using supplemental benefits to attract good employees for decades; it is time for the little guy to fight back.
So what are some specific supplemental benefits? Disability, Life, Dental, Vision, Identity Theft, and Prepaid Legal Services are some of the most popular. In a recent study by Taylor Nelson, 80% of American employees surveyed believe dental benefits are an important benefit that should be offered to them through their employer. In addition, supplemental benefits encourage preventative care and can help improve the overall health of your workforce.
Offering supplemental benefits can provide peace of mind to employees in the event of a serious illness or accident. In addition, employees with disability and life insurance benefits are more likely to return to work and are more focused at work following an illness or tragedy because their basic financial needs were met during the crisis. A study by AFLAC in 2014 found that 42% of those surveyed could not cover their basic out-of-pocket costs associated with a serious illness or accident. As an employer, you also gain peace of mind in knowing that you offered additional protection to employees for these circumstances.
Partnering with a broker to create an attractive benefit package is the key to having success with supplemental benefits. AUI works with you to educate your employees on the value of supplemental benefits and by working with one broker to coordinate your overall package you can avoid coverage gaps and take advantage of a broker who knows your business thoroughly. AUI also streamlines the enrollment process.
If you would like to learn more about supplemental benefits or would like AUI to assist you in creating an overall benefits package, please contact us at 330-645-6339 or e-mail us by clicking here. Our local team of experts helps hundreds of small employers coordinate the benefits for over 50,000 employees and their families and we would love to help you too.