The Benefits Gap, by Erik Hill
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If you’re an employer or HR professional trying to build a benefits package that actually works, you’ve probably heard the term “voluntary benefits” thrown around. Maybe you’re wondering what they really are. Or whether they’re worth the effort.
Here’s the good news: voluntary benefits for employers can be a game-changer. They help you attract talent, support your team’s financial wellness, and fill the gaps that major medical plans often leave behind.
Let’s break down ten things you should know before diving in.
1. You’re Not Legally Required to Offer Them
Unlike workers’ compensation or unemployment insurance, voluntary benefits are completely optional. There’s no legal mandate forcing you to provide them.
That might sound like a reason to skip them altogether. But here’s the thing: just because you don’t have to offer them doesn’t mean you shouldn’t.
Voluntary benefits give you flexibility. You get to decide what makes sense for your workforce without jumping through regulatory hoops.
2. They’re Budget-Friendly (Seriously)
One of the biggest misconceptions? That offering more benefits means spending more money.
With voluntary benefits, you control the costs. You can:
- Offer them at no cost to your company (employees pay through payroll deductions)
- Partially subsidize certain options
- Fully fund specific benefits if you choose
This means you can expand your benefits package without blowing your budget. It’s a win-win for everyone involved.
3. You Pick What to Offer
As the employer, you’re in the driver’s seat. You choose which voluntary benefits to include and what coverage levels make sense.
This isn’t a one-size-fits-all situation. You can tailor your offerings based on:
- Your industry
- Employee demographics
- Company culture and values
- Feedback from your team
The result? A benefits package that actually reflects what your people need: not just a generic checklist.
4. They Help You Win the Talent War
Let’s be honest. The job market is competitive. And salary alone isn’t always enough to seal the deal.
Candidates are looking at the full picture. A strong voluntary benefits program signals that you care about employee wellbeing. It shows you’re thinking beyond the basics.
This can make a real difference when you’re trying to:
- Attract top candidates
- Retain your best performers
- Reduce costly turnover
Think of voluntary benefits as part of your employer brand. They say a lot about who you are as a company.
5. They Fill the Gaps in Major Medical Coverage
Here’s something many employers don’t realize: your health insurance plan probably leaves some gaps.
Major medical coverage is great for big-picture stuff. But what about out-of-pocket costs after an accident? Or income replacement if someone gets sick and can’t work?
That’s where supplemental insurance for employees comes in. Options like disability insurance, accident coverage, and critical illness plans help employees handle the unexpected without financial stress.
These benefits aren’t meant to replace your core coverage. They enhance it.
6. There Are More Options Than You Think
When people hear “voluntary benefits,” they often think of dental and vision. But the list goes way beyond that.
Here are some popular options to consider:
- Disability insurance – Replaces a portion of income if an employee can’t work due to illness or injury
- Accident insurance – Helps cover costs from unexpected injuries
- Critical illness insurance – Provides a lump sum if an employee is diagnosed with a serious illness
- Life insurance – Offers financial protection for employees’ families
- Hospital indemnity insurance – Pays cash benefits for hospital stays
- Wellness programs – Supports overall health and prevention
You can mix and match based on what resonates most with your team.
7. Employees Get to Choose What Works for Them
This is one of the best parts about voluntary benefits. Participation is optional.
Employees pick the coverage that fits their life. A single employee in their twenties might want something different than a working parent with three kids.
This flexibility leads to higher satisfaction. People feel like their individual needs are being considered: not ignored.
And when employees feel valued? They stick around longer.
8. Some Benefits Come with Tax Perks
Certain voluntary benefits qualify for pre-tax deductions under Section 125 of the IRS code. That means employees can lower their taxable income by participating.
Examples include:
- Group term life insurance (up to certain limits)
- Health Savings Account (HSA) contributions
- Flexible Spending Accounts (FSAs)
This adds extra value for your team without costing you a dime. It’s a nice bonus that makes the whole package even more attractive.
9. Payroll Deductions Make It Easy
Worried about administrative headaches? Don’t be.
Voluntary benefits are typically funded through automatic payroll deductions. Once employees opt in, payments happen seamlessly. No chasing down checks. No extra paperwork.
This keeps things simple for your HR team and ensures consistent coverage for employees.
The right benefits enrollment solutions can make this process even smoother. That’s where we come in.
10. One-to-One Benefits Counseling Changes Everything
Here’s a truth bomb: most employees don’t fully understand their benefits options.
They see a long list of choices during open enrollment and feel overwhelmed. So they either pick something random or skip voluntary benefits altogether.
That’s a missed opportunity.
At Colonial Life, we believe in a different approach. Our one-to-one benefits counseling connects employees with a real person who can walk them through their options. No pressure. No confusion. Just clear, personalized guidance.
This helps employees:
- Understand what each benefit actually covers
- Choose options that fit their budget and life situation
- Feel confident about their decisions
And for you as an employer? It means higher participation rates, happier employees, and fewer questions flooding your HR inbox.
Why This All Matters
Voluntary benefits aren’t just a “nice to have.” They’re a strategic tool.
They help you stand out in a crowded job market. They give your employees peace of mind. And they show that your company genuinely cares about the people who show up every day.
The best part? You don’t have to figure it all out alone.
We’re here to help you build a benefits package that works: for your budget, your team, and your goals. From choosing the right mix of supplemental insurance for employees to implementing benefits enrollment solutions that actually make sense, we’ve got your back.
Ready to Learn More?
If you’re exploring voluntary benefits for employers and want a partner who makes the process easy, let’s talk.
We’re here for you( whenever you’re ready.)
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Published by erikroylancehill
Agency Development Manager | Colonial Life Independent Agent | Empowering Your Employees To Protect Income When Life Happens | Building Sales Professionals in Northwest Arkansas View more posts
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The Benefits Gap 
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