Sometimes, payroll deduction for voluntary products isn't an option. Whether for technical reasons, employee demographics, or employer preference, payroll deduction might not be available. But when it is, it's usually the preferred methodology.
But only considering what is easiest for us and the HR department is risky. It's just as important to take heed of what's best for the employees who buy our products. In a recent Eastbridge study, employees were asked to choose the payment method they'd prefer for benefits they contributed to or paid for entirely. Payroll deduction was the overwhelming choice among those surveyed at 76 percent.
All age groups, except the under-30 group, had strong preferences (84-97 percent) for payroll deduction. About half (51 percent) of the under-30 group prefers payroll deduction while 35 percent said they had no preference or were unsure. Only 14 percent prefers credit card or bank account payment systems.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.