7 reasons why voluntary benefits will increase employee retention in 2023

We have been in a season of waves when it comes to hiring and/or retaining employees. While this is understandably frustrating for employees, it’s just as frustrating for organizations and those managing all of this. 

I can’t think of a single person in HR who has come into work and said, “Yes! I get to lay off half of the recruiting team today!”

It’s not fun for anyone. On the flipside, I can’t think of many employees who have responded to a layoff with, “Heck yes! I wanted to be laid off so this is a blessing in disguise.” Most undergo a wave of emotions that always ends with the negative thoughts of knowing that they now have to jump back into the job hunting market. 

Additionally, if your employees are leaving on their own for new opportunities, this is a great time for you to reflect on why that may be. 

Below, we’ll share 7 reasons why voluntary benefits may actually increase your employee retention this year.

First, voluntary benefits are…

an employee benefit that a company offers to their employees as an additional option, such as life insurance or disability insurance. These voluntary benefits can be offered in addition to the standard health insurance plans that are typically provided by employers.

Voluntary benefits can help improve employee retention because they provide employees with more choices and flexibility in how they receive their benefits from the company. 

Increase employee retention this year

Here are 7 ways why voluntary benefits can increase employee retention:

  1. Increased Flexibility: Voluntary benefits provide employees with more options to choose from, allowing them to tailor their benefits package to suit their individual needs. This increased flexibility can lead to higher employee satisfaction.
  2. Better Work-Life Balance: Many voluntary benefits, such as flexible work schedules and telecommuting options, can help employees achieve a better work-life balance. This can lead to increased productivity and ultimately increased job satisfaction.
  3. Improved Financial Security: Voluntary benefits like life insurance, disability insurance, no credit check advances, and retirement plans can help employees feel more financially secure. This can reduce stress and anxiety leading to a more effective workforce.
  4. Attractive to Job Seekers: Offering voluntary benefits can make your company more attractive to job seekers. In a competitive job market, companies that offer comprehensive benefits packages are more likely to attract and retain top talent.
  5. Cost-Effective: Voluntary benefits are often less expensive than traditional benefits packages–some are even at no cost. This can help companies save on costs while still providing for their employees.
  6. Customizable: Voluntary benefits can be customized to meet the unique needs of each employee. This can help employees feel valued and appreciated, which we know if really important in today’s job market.
  7. Tax Benefits: Many voluntary benefits offer tax benefits for both employers and employees. This can help reduce the overall cost of benefits packages as a whole.

Do you offer any voluntary benefits for your employees now? If not, why don’t you?

Higher employee satisfaction

Ultimately, when you have a high employee satisfaction rate, your workforce is more effective and more inclined to stay put. 

Offering voluntary benefits can be a powerful tool to improve your employee retention rates. By providing employees with more options, better work-life balance, improved financial security, and other valuable benefits, companies can create a more engaged and satisfied workforce.

To learn more about TrueConnect’s Financial Wellness Platform, with access to financial advisors, emergency savings plans and loan options for your employees, click here.




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