Glossary of Human Resources Management and Employee Benefit Terms
Voluntary benefits refer to additional employee benefits that are offered by employers but are not mandated by law. These benefits are typically optional, and employees can choose to participate in them based on their individual needs and preferences.
Voluntary benefits can be an essential part of an overall compensation package, helping employers attract and retain top talent while providing employees with a more comprehensive set of options to meet their diverse needs.
Common types of voluntary benefits include:
Offering a range of voluntary benefits allows employers to tailor their benefits packages to the diverse needs and preferences of their workforce. It can also contribute to a more satisfied and engaged employee base, as individuals can choose benefits that align with their personal circumstances.
Voluntary benefits refer to additional, optional perks and insurance coverage that employees can choose to enroll in, typically beyond the core benefits provided by their employer. These benefits are offered at the discretion of the employer, allowing employees to tailor their benefits package to better suit their individual needs.
Types of voluntary benefits:
Offered voluntary benefits and communication:
Considered voluntary benefits:
Understanding what is considered voluntary benefits helps employers tailor their offerings to meet the diverse needs and preferences of their workforce.
Attracting and retaining top talent through voluntary benefits:
Integration of voluntary benefits with overall benefits program:
These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).
Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.
eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.
Maintaining affordability and accessibility of voluntary benefits:
Setting up a voluntary benefits plan:
Tracking and evaluation of voluntary benefits utilization:
Communication and education strategies for voluntary benefits:
By employing a combination of these strategies, organizations can ensure that employees are well-informed about available voluntary benefits, empowering them to make informed decisions during the enrollment process.
Yes, employees often have the flexibility to customize their voluntary benefits packages to align with their individual needs. This customization typically involves choosing from a range of options within each benefit category, allowing employees to select coverage levels, add family members, or opt for specific features that best suit their personal circumstances.
For example, in health insurance, employees might choose between different levels of coverage, add dental or vision options, or select supplemental insurance based on their unique requirements. This customization ensures that employees can tailor their benefits to address their specific health, financial, and lifestyle needs.