Brooklyn's Progress
October/November 2005

Attracting and retaining qualified employees is a critical factor in the success of any company.  This is especially true for small businesses where high staff turnover can often result in dramatically reduced productivity and poor customer service. Compensation packages are an employer’s most effective bargaining tool.  The addition of a strong employee benefits program can help to make a salary offer much more attractive.

However, in an effort to meet escalating employee health coverage costs, many employers find the need to raise deductibles and co-payments and only provide for medical and prescription drug coverage. This leaves employees with increased out-of-pocket expenses and a limited benefits program for which they are unable to fill the gaps with their salaries.  One solution more companies are turning to is voluntary supplemental benefits, a great addition to an employee benefits program.

Voluntary plans can complement your primary health plan by providing direct-to-the policyholder cash benefits, unless otherwise assigned, to fill gaps in traditional health insurance coverage, such as deductibles, out-of-pocket expenses, loss of earning power and living expenses, among others.  

Voluntary supplemental benefits can include those benefits such as dental, disability, cancer and long term care, often omitted from employee benefits plans due to costs.  However, there are options available to employers allowing them to provide these benefits to their employees at no additional cost to their businesses.

Some of the key advantages of including voluntary benefits as part of an employee compensation plan are:

• Voluntary supplemental benefits can enhance your employee benefits (providing a variety of benefits can help you retain key employees.)
• Plans can be offered pretax, through payroll deductions, thus may generate FICA tax savings for your company.
• Administration of the plans and services (presentations, employee communications and claims) are usually handled by the carrier, so you don’t have to worry about having more work to deal with.
• Consider this:  Your benefits package may be the second most costly item you pay for after payroll. Learning about voluntary plans can offer you more flexibility and add value to your employee’s benefits program.

To find out more about voluntary plans call Tommy Tam at 917-637-2945, or e-mail him at tommy_tam@us.aflac.com.