In 2025, the workplace is evolving faster than ever. Employees’ expectations have shifted, competition for top talent is fierce, today it is important to recruit and retain with voluntary benefits. Voluntary benefits are one of the most effective strategies for meeting these challenges. They offer a diverse range of optional perks that go beyond traditional health insurance and retirement plans.
Voluntary benefits have become a cornerstone of modern employee benefits packages. They allow businesses to provide personalized, flexible options that cater to a diverse workforce, all while keeping costs manageable. Here’s why voluntary benefits are more valuable than ever in 2025 and how they can transform your workplace.
Many employers consider expanding their voluntary benefits to compensate employees’ increasing health care costs. Employees benefit because they have a variety of insurance and other program options conveniently available in one place.
Types of Voluntary Benefits
Voluntary benefits are optional programs offered by employers that employees can choose to participate in, often at little or no cost to the business. These benefits are typically paid for by employees through payroll deductions but are offered at discounted group rates.
Examples of Voluntary Benefits Include:
- Supplemental health insurance (e.g., accident, critical illness, hospital indemnity)
- Life and disability insurance
- Financial wellness programs
- Student loan repayment assistance
- Pet insurance
- Identity theft protection
- Lifestyle perks (e.g., gym memberships, childcare assistance, and legal services)
Advantages of Voluntary Benefits for Employees
Not every employee needs the same benefits. Thus, offering a variety of voluntary benefits can be helpful to retain your team. Because of their cost efficiency and portability, voluntary benefits are becoming a central component of many companies’ overall benefits strategies, offering high value to employees, all with minimal effort and cost to the company.
Voluntary benefits can be either insurance or non-insurance products presented to employees to pick and choose from for elective purchases. Employers can offer value to employees with the following:
- Reduced group rates
- Convenience of payroll deductions
- Boost to work-life balance (from such programs as educational assistance)
- The ease of having multiple options all in one place
Why Voluntary Benefits Matter in 2025
In 2025, workplaces are more generationally diverse than ever. Our multi-generation workforce includes Baby Boomers, Gen X, Millennials, and Gen Z often working side-by-side. Each generation has unique needs and priorities, which traditional benefits packages may struggle to address.
- Baby Boomers may prioritize supplemental health insurance or retirement planning tools.
- Gen X might value financial wellness programs or life insurance.
- Millennials often look for student loan repayment assistance or mental health resources.
- Gen Z is interested in flexible perks like pet insurance, gym memberships, or career development tools.
Voluntary benefits empower employees to select options that align with their personal goals and life stage, making benefits packages more impactful and inclusive.
As the labor market continues to tighten in 2025, offering competitive benefits is no longer optional. According to recent surveys:
- 78% of employees say benefits are a critical factor in deciding whether to accept a job offer.
- 70% of employees would stay with their current employer if they were offered additional voluntary benefits” Voya Financial.
Today, voluntary benefits give employers a cost-effective way to stand out in the war for talent. They show that your company cares about employees’ well-being, which can boost morale and loyalty.
Examples of Using Voluntary Benefits to Recruit & Retain Employees:
Society for Human Resource Management (SHRM) Report
Key Findings: SHRM’s “2023 Employee Benefits Survey” found that 92% of HR professionals believe that voluntary benefits play a critical role in improving employee retention and satisfaction. In addition, benefits such as mental health support, flexible work arrangements, and caregiving assistance were particularly effective in retaining talent. Read the entire SHRM Employee Benefits Survey HERE.
Aflac WorkForces Report
A 2022 Aflac WorkForces Report revealed that 61% of employees are more likely to stay with an employer that offers voluntary insurance benefits like accident or critical illness insurance. The report showed that voluntary benefits contribute to a sense of security, which is a key driver of employee loyalty. You can read the entire Aflac WorkForces Report HERE.
Guardian Workplace Benefits Study
Guardian Life Insurance’s 2023 Workplace Benefits Study found that 75% of employees said they are more likely to stay with an employer offering a well-rounded benefits package, including voluntary options. Employees cited flexibility and personalization as key factors in their satisfaction with voluntary benefits. Read the entire Guardian Workplace Benefits Study HERE.
Communication Is Key for Voluntary Benefits
Educating your employees on the value of voluntary benefits is key to realizing the many advantages these benefits can offer. This is where you need a broker who is a partner in your small business. AUI can help educate your employees about the various insurance products and programs you provide. We can help your employees take advantage of your offers. More importantly, educating employees about your voluntary benefits and how they work will help employees understand the full value of what you’re offering. This is a key component of employee retention. You also want your team to know who to ask when they have questions.
Work with A Single Broker like AUI
Working with a single broker, like AUI, to coordinate your various benefits policies, especially when you decide to offer a variety of voluntary benefits, is a good idea. When all your benefits are presented together, you can avoid coverage gaps and take advantage of a broker who knows your business thoroughly and can help guide you through the process of choosing the best voluntary benefits for your employee group.
The brokers at AUI can also provide you with comprehensive materials to help educate your employees on the voluntary benefits you offer. AUI can provide educational materials on voluntary benefits to you and your employees, and we can assist you with choosing and coordinating voluntary benefits to give you and your employees the best value possible. Contact us for more information!
