Whether doing it only to supplement the employee benefits that they currently offer or to make them a more precious commodity to workers, most employers are supportive of voluntary benefits, based on the results of a new study.
In a report recently released by professional development and research organization LIMRA, titled "Stability in a Changing World: Voluntary Options Remain Deep Rooted in Employer Benefit Strategies," a larger number of business owners are advocative of voluntary benefit programs, especially when compared to 2010, when job openings were hard to come by. Throughout much of that year, the nation's unemployment rate hovered at 9.9 percent, according to numbers from the U.S. Department of Labor. It has since declined below 6 percent, a six-year low.
Ron Neyer, assistant research director of distribution research at LIMRA, pointed out that it's this improved jobless rate that seems to be influencing employers' sentiment regarding voluntary benefits.
"As the economy has improved, employers see many advantages to sponsoring employee-funded benefit," said Neyer. "Beyond incurring no direct added costs, many employers recognize that voluntary benefits improve worker morale and job satisfaction."
Improved job numbers has led to employers refining benefits
The report indicated that voluntary benefits, in many respects, have become so popular that a number of business owners wouldn't mind making their entire benefit offering program voluntary. However, of the more than 1,300 employee benefit decision makers polled, 9 in 10 preferred options that were more variegated or comprehensive. Additionally, 50 percent of employers polled forecast these benefit programs to grow in number in the coming years.
"I don't see employer-sponsored benefits going away anytime soon," said Neyer.
He added that with the jobless rate improving, giving workers more options to consider that may be more advantageous from a standpoint of benefits or salary, employers are being more mindful of what their benefit programs include and what they can do to make their staff happy and satisfied. He said that voluntary benefits can not only encourage job seekers to apply but retain employees who are valuable to a company's success and long-term future.
The Affordable Care Act has added more pressure on employers to make benefits available to their workers. Those who don't make them available will be fined by the IRS this year, at least among companies that have at least 50 workers or more who are full-time. The ACA considers full-time employees those who work 30 hours or more a week. The U.S. House of Representatives wants to change this rule to the more common 40 hours per week.
Tracing back to when the ACA was signed into law, the nation's unemployment rate has plummeted. In 2009, for example, roughly 16 percent of Americans went without health insurance, peaking at 18 percent in late 2013, according to Gallup. When the health reform law went into full effect last year, the uninsured rate has dropped consistently, where it now stands at just under 13 percent.
