Today’s job market is as competitive as ever, so employers looking to hire – and retain – top candidates are trying to get creative with how to offer the most attractive benefits package. And while perks like onsite yoga and free breakroom M&Ms might be buzz-worthy, they aren’t the most valued by employees. In fact, according to a survey by Fractl, the benefit that employees most heavily take into consideration when deciding on a job is better health, dental, and vision insurance.
So why should businesses offer these ancillary benefits? Here are four key reasons:
- Tax advantages. Employers who take advantage of Section 125 of the IRS Code (Cafeteria Plan) help lower an employer’s FICA contributions by allowing employees to use pre-tax dollars for ancillary benefits.
- Attract and retain quality employees. By offering ancillary benefits to employees, a business will be more likely to attract – and keep – quality employees who appreciate the value these benefits provide.
- No contributions required! Remember: employers do not have to pay for voluntary ancillary benefits in order to offer them. However, they can choose to share the cost with their employees in an effort to satisfy the employee’s desire for additional coverage without breaking the bank.
- Fills the gaps of a limited benefits package. Dental and vision packages are not included in general health insurance packages, so employees either need to pay for these services out of pocket or find their own dental and vision insurance providers.
Want to learn more about ancillary benefits – from DVH (dental, vision, and health) to final expense insurance? AND get some CE hours while you’re at it? InternetCE is here to help with all your online insurance continuing education needs! Click here to check out our newest ancillary benefits course, “Beyond the Basics | Ancillary Insurance” to learn more!