As companies seek ways to differentiate themselves from their competitors in recruiting and retaining talent, many look to benefits offerings as a way to do so. Not too long-ago employees were courted with in-office perks such as pool tables, concierge service, and unlimited snacks. However, as much as those fringe benefits are enjoyed, employees still turn to core benefits as the main factor in keeping them engaged.
Core benefits insurance usually refers to health and welfare-related benefits paid for by the company, including health and dental insurance. Core benefits may also include company paid income protection programs like life insurance and short and long-term disability coverage. Also considered core benefits are reimbursement accounts that the company contributes to on behalf of the employee, such as health savings and health reimbursement accounts.
Voluntary benefits are optional plans that fill a need the core benefits do not. For instance, a company may pay for an employee’s life insurance up to two times the employee’s salary but offer the option for the employee to purchase additional coverage on a voluntary basis.
Offering a comprehensive benefits program that includes both core and voluntary benefits allows a company to reaffirm its commitment to its employees, helps drive employee satisfaction and retain top talent.