Many businesses are rediscovering a challenge they may not have faced for years: What is the best way to recruit and retain employees in a rebounding job market?
Voluntary benefits are a popular answer to that question, according to a new study by LIMRA, a Windsor, Conn., consulting group that works with insurance and financial service companies. In fact, 70 percent of employers now offer voluntary benefits.
“As the economy and the job market improve, employers are finding it more challenging to attract and retain key personnel,” said Ron Neyer assistant research director for LIMRA Distribution Research. “LIMRA found employers choosing to offer voluntary benefits to supplement their existing benefits package without adding to their bottom line.”
Research shows that the voluntary benefits market has increased in four of the past five years, with an annual growth rate of 5 percent. Neyer attributes much of this demand to increasing medical costs and employers’ need to maximize the return on their benefits investment.