Nearly 60% of today’s employers cite retaining talent as a top challenge, according to MetLife’s 2024 U.S. Employee Benefit Trends Study (EBTS). Offering voluntary benefits can be a small business’s secret to overcoming this challenge.
By crafting a unique and robust benefits program that caters to the individualized needs of their teams, business owners can show their commitment to their employees’ well-being. This approach can help cultivate a happier, healthier workforce and compete with larger organizations in terms of employee satisfaction and loyalty.
“MetLife’s research shows that small business employees lag behind employees at larger organizations when it comes to their holistic health, and this difference is driven primarily by their weakening financial well-being,” said Bradd Chignoli, Executive Vice President and head of Regional Business and Workforce Engagement. “Small business owners can take steps to address this issue by demonstrating employee care, a key element of which is offering a broad range of wellness programs and benefits that support holistic well-being.”
[Read more: Employee Care: 5 Engagement Tactics for Growing Successful Teams]
Why invest in voluntary benefits?
Today's workforce is increasingly diverse, and employees are looking for benefits that align with their unique circumstances. Voluntary employee benefits, such as non-medical benefits and wellness programs, demonstrate a commitment to employee well-being and work-life balance, making your company more appealing to potential hires.
“Non-medical benefits, such as dental, vision, life insurance, pet insurance and legal plans can be powerful tools to help employees feel cared for and address any individual challenges they may face,” Chignoli explained. “These offerings provide valuable protection by helping to address out of pocket costs that could potentially have a negative impact on employees’ financial health.”
In addition to retaining talent, small business owners are also focused on recruiting, with 44% reporting they anticipate on increasing staff in the next year, according to the Q3 MetLife and U.S. Chamber of Commerce Small Business Index. By offering a broad selection of benefits with customization options that allow employees to align with their individual needs and preferences, employers can differentiate themselves from competitors when recruiting as well as foster a more engaged and happier workforce.
The link between benefits and employee well-being
An investment in voluntary benefits is also an investment in employee mental health and well-being — an area that 83% of employees believe their employer is responsible for supporting. Personal challenges in an employee’s life inevitably affect how they perform professionally. If they do not feel supported by their employer, their mental health — and, consequently, their productivity — can suffer. Therefore, prioritizing employee well-being is key to building and retaining a satisfied and productive workforce.
Supporting employee well-being requires benefits beyond just a fair salary; in fact, 93% of employees view workplace well-being as equally important as their pay. Even more, 87% would be willing to leave their jobs if their employer failed to support their well-being.
Effective support means offering meaningful work, a supportive environment, work-life balance, professional development opportunities, and wellness benefits. When employees feel supported in these areas, they are more productive, loyal, and engaged, leading to a greater sense of belonging and reassurance that they’ll have help through both professional and personal challenges.
Employees increasingly expect this care to extend outside the workplace too, with 64% reporting it’s their employer's responsibility to support them through personal matters. Delivering “always-on care” — a proactive approach to support employees through unexpected situations — ensures they feel supported throughout life, from personal losses to housing issues to milestones like pet adoptions or individual achievements.
The top voluntary benefits for small businesses
MetLife's research provides valuable insights into the benefits most valued by today's workers. Employees still consider traditional benefits a top priority: a majority of survey respondents said dental insurance (72%), and vision insurance (67%) were “must-have” benefits in their total compensation package.
However, there is also a growing interest in emerging voluntary benefits. Over three-quarters (82%) of employees are interested in financial planning benefits, and 80% desire identity protection. Interest is also high for varying insurance options, including accident (88%), hospital indemnity (84%) and pet (59%).
You can explore MetLife’s full 2024 data on employees’ preferences and priorities for benefits in this interactive visualization tool.
[Read more: Mental Wellness Benefits That Could Help Employee Retention]
MetLife’s research shows that small business employees lag behind employees at larger organizations when it comes to their holistic health, and this difference is driven primarily by their weakening financial well-being.
Bradd Chignoli, Executive Vice President and head of Regional Business and Workforce Engagement, MetLife
Exploring voluntary benefits with MetLife
For businesses considering voluntary benefits for the first time, it can be difficult to know where to begin. Speaking with a professional from a trusted provider like MetLife and receiving concrete answers to your questions can provide some clarity.
“MetLife is a leader in group benefits with over 150 years of experience serving the needs of businesses,” said Chignoli. “By working with MetLife and its team of small business experts, small businesses have access to a dedicated team who works with more than 35,000 small businesses and has a depth of knowledge and experience to help them find the solutions that work best for employers.”
Here are a few tips to help streamline the enrollment process:
- Contact a representative. To kickstart the process, contact an expert to guide you.
- Ask questions. Inquire about the range of benefit offerings, customization options, and the flexibility to meet the needs of your business and employees.
- Evaluate and compare plans. Request comprehensive information on available plans, their features, and associated costs. Gathering this information will help you make an informed decision about your most suitable option.
- Partner with a broker or benefit consultant. Partner with a broker or consultant who will provide you with expert guidance and ensure you make the most of your benefits offerings.
[Read more: Managing Your Own Payroll & Benefits? Why It Might Be Time to Consider a PEO]
How to implement and communicate a voluntary benefits program
Implementing a new voluntary benefits program is only part of the equation; effectively communicating it is equally crucial. As employers add voluntary benefits offerings to their employee experience, they should communicate these options clearly and provide personalized information.
To enhance employees' understanding and build a happier, more loyal workforce, employers should engage employees through various communication channels and incorporate personalization into their benefits communication strategies. Research shows that communication can significantly impact how cared-for employees feel, with 50% of employees reporting that improved benefits communication would help them feel more valued.
There isn’t one best communication channel, as preferences vary across generations. For instance, Baby Boomers prefer in-person benefits discussions, while Gen X and younger generations prefer digital options such as online portals, email, and multimedia resources like podcasts or videos.
Alongside these differences, certain employees — particularly, younger generations — are likely to need more guidance in understanding benefits packages, as they often have less experience and could use more educational support.
One common misconception is that implementing and administering group benefits can be too time-consuming for small business owners who often wear multiple hats. However, providers like MetLife can simplify the administration of benefits by consolidating multiple coverages with a single carrier to save you valuable time and money.
“As small business owners continue to compete with larger organizations for talent, they have the opportunity to stand out by better understanding their employees’ needs and offering the benefits and solutions that can help them improve their holistic health,” said Chignoli. “By doing so, they can demonstrate employee care and potentially boost productivity, loyalty and satisfaction.”
For more insights into employee benefits trends, download the full 2024 EBTS or visit MetLife’s Workforce Insights page.
