Busting the myths of voluntary benefits
Many small business owners are just plain unaware that they are able to offer their staff this kind of benefit, thinking they are just for the bigger players. The vast majority of smaller companies may have never had a conversation with anyone about employee benefits. All these points have led to the creation and perpetuation of a number of widely-held beliefs that are untrue.
What myths have you heard? We’ll share what we have heard most commonly.
Myth – Affordability
Small businesses believe they can’t afford to pay for voluntary benefits, even if they see the positives in offering them.
Truth – Voluntary employee benefits can be partially-funded or even fully-funded by the employee. It means that the company has complete control on how much they decide to spend and what options they choose to add.
Myth – Not enough employees to qualify.
Truth – While it does depend on the carrier and the product, many voluntary benefits are available to businesses with single-figure numbers of staff, and some have no minimum requirements.
Myth – Administering a voluntary benefits plan is costly and complex.
Truth – Certain benefits provide tax advantages and are tax-deductible. Some can be paid for through payroll deduction. Many qualified carriers will be pleased to help with education of employees and can provide easy enrollment and administration, usually at no direct cost – allowing the employer to get on with running their business.
Myth – Employees don’t value it.
Truth – This misperception often stems from employers themselves. While most employers believe employees value take-home pay over benefits, employees actually value non-medical insurance benefits and voluntary benefits almost twice as much as employers believe.2
1 “Small Businesses Face Operational, Regulatory Challenges.” Gallup Economy, 28 Feb. 2014. Web. 4 Apr. 2014.
2 “Small Business, Big Benefits: Sharpening the competitive edge with voluntary benefits.” Colonial Life & Accident Insurance Company, May 2014.