Top five ways to build the case for voluntary benefits

November 21, 2024

Data-driven insights can be a powerful tool in securing the support of key decision makers. Here’s how to successfully present the data:

• Gather data on current benefits usage and satisfaction.
• Identify gaps by benchmarking against industry standards. For example, if 60% of competitors offer flexible wellness stipends and only 10% of your employees feel satisfied with current wellness offerings, this may be a gap.
• Use visuals to present data to leadership, highlighting potential improvements.

When you present the data, focus on key metrics that will resonate with leadership. For example, highlight the cost savings associated with lower absenteeism, reduced employee turnover and improved productivity. Quantifying the potential return on investment of voluntary benefits strengthens your argument and positions it as a strategic investment rather than an additional expense. This data-driven approach not only demonstrates the alignment of voluntary benefits with employee needs but also highlights their potential to enhance employee satisfaction and engagement.

To gain leadership buy-in, demonstrate how voluntary benefits align with your organization’s strategic objectives. For example, if reducing employee turnover is a key objective, show how voluntary benefits and wellness programs can help.

Offering these benefits can signal to employees that their well-being is a top priority, fostering loyalty and commitment to the organization. Ideas include:

• Clarify the company’s strategic goals, such as reducing turnover, improving productivity or attracting talent.
• Highlight the alignment. For instance, a multi generational workforce will require a diverse benefit offering. Voluntary benefits allow you to do just that.

Understanding what benefits employees value is crucial for building the case for voluntary benefits. Conducting surveys or organizing focus groups provides valuable insights into employees’ preferences and needs. This information demonstrates to leadership the genuine demand for voluntary benefits among the workforce. Strategic steps include:

• Develop a survey to rank preferred voluntary benefits and consider a focus group for deeper insights.
• Analyze data to advocate for relevant benefits.
• Present preferences to leadership, highlighting potential improvements in retention and satisfaction.

Don’t forget to consider the demographic diversity of your workforce. By analyzing the unique needs of different employee groups, such as age, gender and family status, you can ensure that the voluntary benefits you offer are relevant and responsive to the varying needs within your organization. By demonstrating that your voluntary benefits are not only desired but also tailored to the specific preferences and circumstances of your employees, you can strengthen your position as an employer of choice.

To win leadership buy-in, it’s essential to outline the cost implications and return on investment (ROI) for voluntary benefits. A clear and comprehensive financial analysis will help decision makers understand the costs associated with implementing voluntary benefits and the potential savings they offer. This analysis should involve comparing the cost of providing voluntary benefits to the potential savings from reduced employee turnover, lower absenteeism and increased productivity. Steps include:

• Highlight employee-funded benefits (e.g., supplemental insurance) to avoid additional company expenses.
• Research and estimate savings — for instance, wellness programs can reduce absenteeism by 14-19%.⁴
• Create a cost-benefit analysis report, including ROI (e.g., a $40,000 program may save $100,000 in turnover costs).

Quantifying the cost savings from reduced turnover is a key element in the cost-benefit analysis. High employee turnover rates can lead to significant costs for organizations, including expenses related to recruitment, training and lost productivity. By offering attractive voluntary benefits that cater to employees' needs, organizations can reduce turnover rates, leading to cost savings and improved operational efficiency.

Gaining the support of influential leaders within your organization can be a critical step in building a strong case for voluntary benefits. Identifying these key stakeholders and actively engaging with them can make your case more persuasive. The support of these leaders can significantly increase the likelihood that the rest of the leadership team will view voluntary benefits as a valuable investment. Consider taking these steps:

• Identify key decision makers (e.g., small business owners, CFO, CEO, department heads).
• Meet with stakeholders to discuss benefits and address concerns (e.g., emphasize ROI for cost-conscious CFO).
• Secure stakeholder support to champion the cause (e.g., CFO presenting financial viability).
• Include endorsements in the formal proposal to strengthen the case.

When leaders genuinely believe in the positive impact of these benefits on employee morale and productivity, they become powerful advocates for their implementation. Their positive energy can create a culture shift toward a more robust and supportive benefits program.

Colonial Life can help enhance your employee benefits package to attract, retain and support a diverse workforce.