Voluntary Benefits: An Employee Engagement & Retention Strategy That Works

Voluntary Benefits: An Employee Engagement and Retention Strategy That Works

COVID-19 has forced everyone to rethink and reevaluate how they live. Consequently, this reexamination includes people’s situation at work.  Truth is, not all workplaces  operate with the same philosophy when it comes to taking care of their employees. Similarly, not all workplaces pivot towards a common direction.

While we’ve seen companies undergoing lay-offs, reduction and downsizing,  we’ve also equally seen frequent and/or  mass resignations that call for a demand to fill these vacant positions with qualified people.  Unfortunately, there are some companies that do not pay close attention to the reasons why people are leaving them. While there are many ways that companies can attract talent starting with an attractive salary package and a clearer bonuses and a prestigious job title, all these strategies may not ultimately result in keeping an employee engaged, motivated and more importantly secure.

The employee and employer dynamics are changing. In the Philippines, we have seen that employers are now looking into initiatives that answer more than direct financial returns and basic core benefits to attract and retain their top employees.   Specifically, more and more companies are now investing in and expanding their employee benefits in ways that are relevant, competitive and innovative.

Why the need for voluntary benefits?

            Not all employers have the financial strength and capacity to provide for the employees’ dependents who are equally in need of financial assistance and support. In fact, with the pandemic, it has already been proven that the cost of hospitalization can cause a tremendous financial strain on the household if there is no insurance coverage. Also there may be other important benefits that the employees may find relevant and important to them personally that they cannot afford on their own.

With voluntary benefits, employees are provided with the opportunity to plan and provide for financial support in an affordable manner. Since the employee can avail of group discounts and pay for it in increments if a salary deduction scheme is allowed, these unforeseen and expensive expenses can now be managed better and give the employees a better sense that their personal situation matter to their employers.  Among other things, talking to employees about voluntary benefits sends a message that the companies believes and understands that each person is unique and will welcome benefit offerings that are catered towards their unique and personal circumstance.

How do voluntary benefits strengthen the workforce strategy

The cost of setting up a voluntary benefits program is favorable to employee and employer because there is no added direct financial expense on the part of the company.

Having a voluntary benefits program closes the gap between the “caters to everyone”  insurance benefit plan  and additional needs that are not covered. McKinsey’s survey show  that among the respondents who decided to quit employment or a professional career,  45% mentioned taking care of the family was the main trigger in their decision.

Given these, it’s important to understand that an employee retention strategy means more than just providing for a generous salary.  These days, it’s more about  financial wellness—one that is long-term and practical especially in during a pandemic.  Moreover, when employees are able to access r benefits that are personal, valuable, and necessary to them and their loved ones, there is an added motivation for them to stay and to be engaged at their jobs making it beneficial to the company’s bottomline.

If your company wants to better understand how a voluntary benefit program works,  join our Voluntary Dependents program (or “VDEPS”) that we offer through PhilInsure at www.bnfts.ph/vdeps. PhilInsure’s VDEPS covers up to 250K medical coverage, and requires only a minimum group of 10 employees. For more inquiries, send an email to [email protected].