Finding—and retaining—top talent is a huge concern for employers. It can be tough to find those “superstar” employees, and once you do, you certainly don’t want to lose them. The compensation and benefits package a company offers is a serious consideration of most employees.
However, many employers are falling short in that area, particularly when it comes to ancillary benefits. This blog will look at the ancillary benefits market, and how it is falling short of employee needs and demands.
Ancillary benefits increase employee engagement
Employee engagement is an important metric for companies to be aware of. Here’s how employee engagement stands today:
- 33% of employees are engaged; they love their job and are fulfilled
- 51% of employees are neutral; they are “just there”
- 16% of employees are actively disengaged; they are miserable and toxic for the workplace
The majority of employees today are neither happy nor miserable at their jobs. They show up to do their work, but don’t go above and beyond. Employers, of course, want employees to be more engaged and prevent active disengagement.
Offering ancillary benefits is one way companies can keep employees happy and prevent turnover. The following statistics are telling:
- 48% of employees would change jobs for more benefits
- 60% of employees say that their overall benefits package is a major factor in accepting or declining a new job offer
- 80% of employees would choose additional benefits over a pay raise
U.S. workers need ancillary benefits
Clearly employees desire more benefits, including ancillary benefits, but there is also a serious financial need. U.S. workers today are financially vulnerable:
- 25% of employees will be temporarily disabled by the time they retire
- 70% of households live paycheck to paycheck
- 70% of households with kids would suffer financially if primary earner passed away
Ancillary benefits can help employees and their families protect against negative financial outcomes or unexpected medical problems. To further illustrate the need, here’s a quick look at the coverage today:
- 24% of employees have no life insurance
- 75% of employees have no long-term disability coverage
- 33% of employees have no disability insurance at all
The lack of ancillary benefits is clearly an important issue that employers should address. Companies have the opportunity to attract more top employees, improve engagement among their workforce, and help their employees guard against financial hardship.
If you’re interested in more insights into the ancillary benefits market, check out this infographic. (Brokers: This is a great piece to share with your clients to start the ancillary benefits discussion.