Voluntary benefits: The tops and the flops
November 4, 2008 by Bill MeltzerPosted in: In this week's e-newsletter, Latest News & Views, Voluntary benefits
Benchmarking employees’ choices of voluntary benefits is a good way to take their “benefits pulse.”
Reason: Employees “vote” for such plans with their own wallets. Here are the voluntary plans employees ask for and enroll in most often, according to one survey.
Long-term care insurance is one the most asked-for voluntary benefit at firms not already offering it. About one-quarter (26.3%) of firms cited it as the most in-demand benefit at their firm. Top runners-up:
- retiree medical. Some 19.3% of benefits pros have seen a big jump
in people’s interest in Medicare supplements and similar plans, and - supplemental disability. It’s the third-highest in demand at 14%.
Implication: With enrollment in long-term care and retiree medical often skewed toward older employees, Baby Boomer employees are the most willing group to sacrifice pay for greater benefits security.
Among younger employees, the fastest-growing demand (10.5%) and enrollment (14%) is in homeowners and/or auto insurance plans.
The two biggest duds are both “small niche” benefits:
- identity theft coverage. Despite widespread publicity about the rising crime of benefits theft, only 3% of firms offer such plans, and
- pet insurance. While it’s in-demand among a small percentage of employees (8.8%), only about 4% of firms offer the coverage.
