Worksite Marketing of Voluntary Benefits
Savvy employers know the importance of offering comprehensive Employee Benefits. Yet rising costs and media commotion have directed most attention to healthcare insurance and wellness programs. Meanwhile, on the sidelines sits an often-overlooked employee recruitment and retention solution: voluntary benefits.
A well-integrated voluntary benefits component complements the core package of Employee Benefits by offering additional, optional coverage through payroll deduction. “Optional” is emphasized here because for those who need it, it really isn’t optional.
By definition, the general Employee Benefits program offered by an employer addresses the general needs of most of the eligible employees. Whether because of family or financial obligations, some employees seek coverage customized to their specific risks. Such employees need and want to purchase individual life and disability income insurance.
Although voluntary benefits are paid for by the individual, are portable, and are not a function of employment, having them available and administered through the employer contributes to employee satisfaction.
Of course, the level of satisfaction depends on how well the voluntary benefits program is run. This is where employers seeking the best results turn to trusted independent insurance brokers who specialize in “worksite marketing.” An effective and efficient worksite marketing program follows a systematic four-step process.
Integrated Product Selection
Voluntary benefits specialists begin by assessing what is already in place. They review the existing core Employee Benefits program to identify areas of potential exposure. Then products are selected that close the gap by reducing risk and augmenting current coverage.
Integration of universal coverage for general needs and customized individual products for specific needs is essential to maximize the overall Employee Benefits program.
Best-in-Class Product Marketing
For employers focused on the operation of their own business — as they should be — the range of insurance options available for their employees can be overwhelming. Conversely, when employers turn to nonindependent brokers — brokers who sell only their own brand of insurance — the choices are too restricted.
This is the point at which knowledgeable, highly regarded independent insurance brokers prove their worth. Such brokers have access to the universe of carriers and the ability to pick the “best of class.” That’s exactly what they do at step two in worksite marketing. In addition, they provide a detailed marketing analysis — identifying the insurance carrier programs that offer the best value to employers in pricing, features, and underwriting requirements.
Education-Based Comunication
Employers make a significant financial commitment to Employee Benefits, yet many employees do not have a comprehensive understanding of this form of compensation. Independent brokers trained in education-based communication help employees understand and appreciate what their employer provides. Rather than presenting hard-sell, commission-driven pitches, such brokers convey facts and figures essential to informed decisions.
Long-Term Service Comitment
Broker commitment after the sale is crucial to any successful benefits program. It is especially so with a comprehensive program that includes general and voluntary components. The “total package” consists of the right products and the right enrollment process.
Brokers should coordinate all carrier contact to alleviate billing and administrative issues. They should conduct periodic reviews, present possible enhancements, and coordinate education and re-enrollment for current and new participants.