Build Business Resilience With Voluntary Benefits
Your people are the lifeblood of your business. It’s critical to keep them happy because replacing even rank and file personnel is time consuming and very expensive. Making people happy within your organization is easy if you have the right culture and management. That being said, other factors can be the golden handcuffs you need to make sure your workforce is truly running at its peak. Read this blog about employee-paid or shared cost benefits that can offer the flexibility you need to make the difference.
FROM INC MAGAZINE /BY PRINICIPAL
Employee-paid or shared-cost benefits are an often overlooked, cost-effective strategy for protecting your team—especially in uncertain times.
In today’s unpredictable business environment, small and midsize business (SMB) owners face mounting pressures from all directions. From rising costs to ongoing workforce challenges, the need for resilience has never been greater.
“We don’t magically leave our personal lives at the door when we enter our workplace,” says Kara Hoogensen, senior vice president and head of workplace benefits for Principal®. “Employers are well-served to think about their team members as whole humans—people who will take care of business if the business takes care of them.”
One often-overlooked strategy for taking care of your people to build that business resilience? Voluntary benefits.
Why voluntary benefits make sense now
Voluntary benefits—such as hospital indemnity, critical illness, and accident insurance—offer a particularly attractive solution in uncertain times. These employee-paid or shared-cost benefits can allow you to:
• Expand your benefits package without straining your budget.
• Give employees choice and flexibility in their coverage.
• Strengthen your retention strategy when every hire counts.
The talent connection
With nearly 60 percent of business focused on finding qualified job applicants, the competition for talent remains fierce. A robust benefits package can help make the difference: 82 percent of SMBs say employee benefits are important to employee loyalty.
Meeting evolving employee expectations
Today’s workforce isn’t just looking for a paycheck. They’re seeking comprehensive support for their well-being:
• 89% of employees of SMBs want more benefits within the year.
• 83% of households of SMB employees say they’re feeling the impact of inflation.
• Mental health concerns remain high, especially among younger workers.
Protection that matters: A case study
Voluntary benefits provide targeted financial protection when employees need it most. For instance, even with health insurance, an unexpected medical event can quickly derail financial stability. Supplemental coverage helps bridge that gap, allowing employees to focus on recovery rather than finances.
For instance, Eric Lamb worked for years as a regional manager for a Principal business client, an automotive lift company—spending much of his time on the road selling equipment and training employees. He chose to enroll in critical illness* coverage, which came in handy a year later when he was diagnosed with colorectal cancer.
His extended treatment prevented him from working for a while, but he was able to use the lump-sum cash benefit from his voluntary insurance to support his family.
“The financial support from my workplace critical illness coverage allowed me to focus on my recovery,” Lamb says.
Building long-term resilience
As businesses navigate market shifts and economic uncertainties, taking care of employees remains paramount. The average cost of hiring a new employee stands at $4,700—making retention more critical than ever. Voluntary benefits offer a strategic way to demonstrate your commitment to employee well-being while managing costs.
The path forward
In a business landscape where both employers and employees seek greater financial stability, voluntary benefits provide a practical solution. They allow you to:
• Expand your benefits offering without impacting your bottom line.
• Support employees’ financial well-being.
• Strengthen your position as an employer of choice.
• Build resilience against market volatility.
“Every employee is different, and most find value in accessing a wide range of benefits to make choices that best fit their specific needs and financial goals,” Hoogensen says.
By thinking strategically about voluntary benefits, you can create a stronger, more resilient organization—one that’s better equipped to navigate whatever challenges lie ahead.