Which product aims to enhance the value of the product /offer through voluntary improvement
Answers
Explanation:
Voluntary Benefits
Striking a balance between containing benefits costs and enhancing benefits coverage continues to be a top priority for employers, as they navigate a competitive talent marketplace.
By adding a voluntary benefits component to their overall benefits strategies, employers are finding it is possible to offer their employees a complete benefits package.
The voluntary benefits space is growing in importance and it offers something for both employers and employees.
For employers, it’s an easy way to enhance the company’s benefits program without adding to their costs or unduly stretching their administrative burden. For employees, their workplace is acknowledging its diversity and multi-generational make-up and giving them the flexibility to tailor their benefits to match their needs.
Key Market Drivers for Voluntary Plans
A saturated group benefits market.
Employers are looking to control company healthcare costs.
Employers want to stay competitive with peers who offer similar benefits.
These polices can be carried over by employees to their new jobs which makes them attractive to insurers.
Key Impacts of Voluntary Employee Benefit Program
Cost of insurance benefits
Double digit medical inflation coupled with a focus on profitability and utilization of benefits programs has forced companies to look for other employee benefits options rather than just opting for low-cost schemes.
Adequacy of benefit plans
When it comes to current employee benefits programs, employees in India probably incur highest out of pocket expense compared to other markets. Wellness and financial risk covers are also inadequate.
Voluntary employee benefits programs offer platforms to add enhanced benefits which would otherwise have to be built into a core plan. This solution minimizes cost increases. Voluntary employee benefits programs allow employees to buy additional coverage. Enhancements that can be offered on a voluntary basis include:
Higher medical, life, travel and/or accident coverage for employees and dependents.
Opting for plans to cover various out of pocket expenses like out-patient services.
Buying plans to cover other risks like auto and/or home.
Talent strategy
As employees become more aware of benefits, a voluntary employee benefits program has become an important part of attraction and retention strategies for Human Resource functions.
Voluntary programs offering choice of benefits that address the changing workforce needs, assist employers to become employers of choice. In this way voluntary employee benefits programs address three important employer objectives: market competitiveness, changing lifestyles and wellbeing, and access to medical advancements.