How to differentiate your offerings with nontraditional voluntary benefits

In the benefits marketplace, you must provide innovative solutions that meet the evolving needs of the workforce. Various benefits are available to enhance employee satisfaction, and you can position yourself as a forward-thinking partner by offering nontraditional voluntary ones.

Why brokers need to differentiate with nontraditional benefits

Nontraditional voluntary benefits offerings are key to attracting and retaining top talent in today’s job market. As employee expectations increase, companies are looking to offer more than a standard health insurance and retirement plan.

According to MetLife, 92% of employees expect more consistently delivered care from their organization, and 79% anticipate it even in their personal lives. For employers to meet the growing demands for holistic wellbeing support, you have an opportunity to differentiate your offerings with nontraditional voluntary benefits.

Implementing nontraditional voluntary benefits

Since employee demands are on the incline, employers are trying to broaden their benefits offerings. This means that you will need to implement your offerings in a way that resonates with clients. A strategic approach to make these benefits attractive includes:

• Customization and flexibility: Every company’s workforce is different, so it is important to customize benefit offerings to meet their individual needs. Brokers should work closely with clients to tailor packages that appeal to their employees. By avoiding a one-size-fits-all approach, you can provide personalized solutions that resonate.
• Offer a broad spectrum of options: Stay ahead of the competition by offering a wide range of options. Providing several voluntary benefits to choose from allows companies to stay adaptable to their employees’ needs as they evolve.
• Leverage vendor partnerships: Collaborating with specialized vendors provides access to high-quality voluntary benefits that set your offerings apart. Establish strong relationships with these vendors to ensure you offer the latest and greatest benefits.

Nontraditional voluntary benefits to offer

Nontraditional voluntary benefits enable employers to offer something different to today’s workforce. Some of the top unique benefits you should consider include the following.

1. Supplemental health protection

Supplemental health protection is another highly sought-after voluntary benefit. These benefits provide employees additional financial protection in unexpected health emergencies, covering expenses that traditional health insurance may not fully address.

According to Gallagher’s insight, employers’ interest in offering these benefits has surged. Interest in accidental voluntary benefits increased 41%, while interest in critical illness benefits rose 36% year-over-year.

It is clear that employers have a growing concern regarding the financial impact of accidents or severe illnesses on their workers. Offering these benefits will help clients create a more comprehensive benefits package that appeals to employees across different life stages.

2. Student loan repayment

Another nontraditional voluntary benefit to consider is student loan repayment assistance. This benefit is quickly becoming valuable among the workforce, especially as younger generations face a major financial burden from student debt. As part of their efforts to attract and retain top talent, 22% of HR professionals included this option in their 2023 talent strategy.

Student loan debt can be extremely overwhelming for employees, and providing financial assistance in this area can greatly improve their economic wellbeing. Offering this benefit will help them manage their debt while boosting employers’ commitment to support. You can consider offering this service to clients targeting employers with millennial and Gen Z employees.

3. Volunteer time off

Volunteer time off (VTO) is an increasingly popular benefit that allows workers to take paid time off to engage in volunteer activities of their choice. This benefit is growing in popularity due to employees’ growing desire to make a positive impact beyond their professional roles. Currently, 25% of U.S. citizens volunteer yearly, making corporate social responsibility more important than ever.

When employers have the ability to offer VTO, they can boost their team’s morale and strengthen company culture. It also enhances their business’s reputation and helps them stand out as one that values community involvement. Therefore, you can be sure to help your clients attract socially conscious employees.

Related: Voluntary benefits: A snapshot of employees’ current views

4. Short-term disability

Short-term disability insurance is a key nontraditional voluntary benefit that provides financial protection to employees who are temporarily unable to work. It can give employees peace of mind knowing they have income protection during unexpected health-related absences.

For employers, providing this benefit meets the needs of workers who seek security and financial strength during a temporary disability. Moreover, it can help them create a more inclusive and supportive work environment, as individuals with disabilities have a 1.5 times greater chance of experiencing discrimination.

Although short-term disability premiums saw a quarterly sales decline of 9%, overall sales increased by 8% year over year. Despite the drop, research indicates that a strong performance in short-term disability sales shows continued demand in the marketplace.

5. Identity theft

As data breaches and cyberattacks grow more frequent and sophisticated, identity theft protection has become more valuable as a voluntary benefit. In 2023, data breaches increased by 78% — with 2,365 compromises resulting from cyberattacks — affecting over 343 million people.

This alarming rise has driven a huge increase in employer interest in offering identity theft protection. With more companies looking to protect their employees from the digital world, you can differentiate your offerings by including this benefit.

Meeting modern employee needs with unique voluntary benefits

The workforce’s needs are changing and growing, so the benefits you offer must evolve, too. Consider the various voluntary benefits that provide unique but comprehensive solutions. By adding them to your services, you can stay relevant in a rapidly changing market.