Voluntary Benefits Valuable: Study
NU Online News Service, July 2, 11:28 a.m. EST?Companies offering insurance products as voluntary benefits, including auto and homeowners protection, increase employee loyalty and help organizations retain their employees, according to an insurer survey.
A study of 2,000 households, which looked at how voluntary benefits increase employee loyalty to an employer was released yesterday by Newark, N.J.-based Prudential Financial.
"We're seeing a strong relationship between length of employment and participation in voluntary benefits," said Tom Martorana, chief operating officer of Prudential WorkingSolutions.
Participation in voluntary benefits, he said, is greatest among employees with five or more years of service. "There's a pronounced increase as employees pass the 3-5 year mark, across all types of occupations," he said.
The study also reveals that when offered, voluntary benefits purchase rates among employees, even across different company types, range from two-thirds for dental; half for vision, and supplemental life; and one-in-five for auto, homeowners, and legal care insurance, according to Prudential.
Mr. Martorana said that payroll deduction, group pricing and discounts, and ease and convenience make voluntary benefits attractive enough to influence decisions to take jobs and remain with an employer.
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