Voluntary benefit programs are a cost-effective way for companies to enhance their total rewards plan and improve their ability to attract and retain employees. Results from a 2008 Culpepper Benefits Trends Survey highlight a variety of different voluntary benefits offered to employees, including typical reasons why companies choose to offer voluntary benefits.

Voluntary benefits are supplemental benefits employers offer to employees on a voluntary, employee-paid basis. Employers typically do not make any contributions and do not subsidize the costs for voluntary benefits. Employees usually pay 100% of the benefit cost through payroll deduction.

Types of Supplemental Voluntary Benefits Offered to Employees
There are numerous types of voluntary benefits companies offer to employees. Individual supplemental life insurance is the most common voluntary benefit offered, with 68% of companies making this benefit available to employees and their spouses and dependents (Figure 1).

Nearly half of companies with voluntary benefit programs offer their employees access to purchase discount programs for a variety of consumer products and services, such as gym memberships, mobile phones, computers, and dry cleaning.

Reasons Voluntary Benefits Offered to Employees
The most common reason companies offer voluntary benefits is to attract and retain employees by improving their benefits package and making it more competitive (Figure 2).  

Reasons Voluntary Benefits Not Offered to Employees
Common reasons why companies choose to not offer voluntary benefits include:

• Current benefits package is adequate

• Low interest from employees

• Avoid additional administration and communication costs

• Have never considered offering voluntary benefits

Data Source: Culpepper Benefits Survey of 129 participating organizations.
Survey Dates: August 2008

Participant Breakdown by Sector:
Technology 63%, Life Science 16%, Healthcare Services 2%, Energy 2%, Other 17%

Participant Breakdown by Number of Employees:
Up to 100 Employees 29%, 101 to 1,000 Employees 50%, Over 1,000 Employees: 21%

Participant Breakdown by Corporate Status:
Public 26%, Private 67%, Non-Profit 6%, Government 1%

Participant Breakdown by Country:
United States 93%, Canada 3%, Other 4%