In part one of our interview with Larry Estridge, The DBL Center’s new Regional VP of Group Voluntary Worksite Benefits, we talked about Estridge’s plans to work with DBL Center brokers to help them fill gaps in coverage and build loyalty with their clients through expanded voluntary employee benefits.
In part 2, we dig deep into why voluntary benefits at work are so crucial today as we face “The Great Resignation.” Record numbers of employees are quitting their jobs, according to recent reports, and there are more positions available than qualified employees willing to fill them. Additionally, nearly 2/3 of U.S. workers are currently looking for a new job.
Surprisingly, one study conducted by OnePoll on behalf of Motivosity suggested that “job satisfaction” is not the key reason people quit their jobs. Findings from other surveys found that the keys to retaining employees come down to a number of factors, including the employee’s culture fit within the company, their relationships with co-workers, and the sacrifices they’d have to make if they quit – such as losing voluntary benefits at work.
Estridge pointed out, “A person is less likely to go down the street to a company’s competitor for another couple of bucks if they know they have a strong benefit package where they are.”
For insurance brokers, The Great Resignation represents an opportunity to cross-sell voluntary employee benefits with statutory lines of coverage and help their customers recruit and retain top talent in tumultuous times.
In our last chat, we touched upon the broad variety of voluntary worksite benefits. Can you explain each product line in a bit more detail?
Larry Estridge: Let’s start with disability insurance – it replaces a portion of income, usually up to 60%, for on- and off-the-job accident and sickness.
Accident insurance pays a scheduled benefit for on-and-off the job accidents, such as burns, broken bones, ambulance rides, and emergency room coverage. It can also help with out-of-pocket costs such as deductibles and co-pays.
Critical illness insurances helps employees pay out-of-pocket costs at the time of diagnosis, for things like cancer, liver disease, heart disease, stroke. It’s paid in a lump sum benefit directly to the employee. It can be used for medical expenses, rent, mortgage, groceries, anything they deem important at the time. So, it gives an employee ease and flexibility.
Life insurance is another one of the more common voluntary benefits at work. It’s often used for funeral costs, final expenses, leaving behind money as part of their legacy.
Dental and vision coverage. Those two are self-explanatory and those are the two that are usually associated with voluntary benefits at work.
Why are these voluntary employee benefits so important from a recruiting and retention standpoint, especially during the labor shortage?
A person usually takes a job or a position with a company for the right career path, or they’re looking for a competitive or good salary. But what really keeps a person at a company, aside from the paycheck, is a strong benefits package. Voluntary benefits at work are a main part of the reason companies are able to recruit and retain employees. People are really looking ahead – especially in today’s times.
Do most companies typically go for employee-funded, employer-funded or shared costs?
Larry Estridge: I would say that varies. Most companies offer some group life / AD&D along with dental and vision paid for by the employer. They may provide some LTD or STD, but employees can then choose from different offerings such as critical illness, accident insurance and the like, or they can “buy up” on other offerings. These products can be extended to family members. Usually the cost is absorbed by the employee when they do that.
Many states are introducing Paid Leave, Paid Family Leave, and expanded disability benefits packages. With this coverage available through the state, why is it more important than ever for employers to provide a range of voluntary benefits at work?
Larry Estridge: Going back to these crazy times we live in, employees are becoming more aware of what their benefits are, and what they can and can’t do. Voluntary employee benefits basically allow them to have a choice, to have some control over what their benefit package will look like. Employees can choose what’s most important to them and their families.
Again, the most robust offerings are, the better the pool of employees the owner can recruit into the business. Trying to bring someone on board – or keep them from moving elsewhere – with a strong benefit package is exactly what businesses need to be doing to combat today’s high quit rates.