Worksite Smarter.
“The Hidden Benefits of Benefits” Every Producer Should Know

Posted November 19, 2024

When thinking about employee satisfaction, many companies zero in on compensation, workplace culture, or career development. But there’s an underexplored factor shaping employee experiences: Group voluntary benefits. While often overlooked in strategic discussions, these benefits may quietly influence employee satisfaction in profound ways that go beyond traditional measurements. Let’s dive into some less obvious connections that you may not have considered.

Unseen Signals of Company Culture

Group voluntary benefits aren’t just about providing options—they communicate values. Employees may take cues about what a company stands for based on the benefits it offers. For example, offering group whole life insurance that has a death benefit, as well as living benefits, or group accident insurance with telemedicine benefits signals a commitment to an employee’s well-being that goes deeper than standard health coverage. These offerings may act as cultural markers, potentially demonstrating to employees that their personal financial well-being can be bolstered at work. On average, 64% of employees perceive group accident insurance and group critical illness insurance as very valuable to extremely valuable benefits. That number increases to 70% for life insurance.¹

The real power lies in the subtleties. A well-though-out benefits package isn’t just a list of perks. It reflects your clients’ recognition of the evolving definition of what makes a workplace supportive. For instance, offering group accident insurance may seem trivial, but it can signify a broader understanding of what matters to different people. When employees see their personal circumstances considered, it can subtly but meaningfully boost their connection to the organization.

The Psychological Leverage of Choice

Voluntary benefits can also play into a psychological effect that is often underestimated in workplace satisfaction: the impact of perceived control. We’ve been conducting our own trend-following surveys now for over a year and what we recently found is there is a strong connection between job security, financial well-being, and overall happiness among working Americans. While confidence in job security is waning, voluntary benefits have the potential to provide a sense of financial well-being in their own right.² The full report is available for download from our MassMutual Worksite website.

Having the freedom to select benefits that align with personal circumstances reinforces the idea that employees are empowered to make choices that fit their needs. It’s not the benefits themselves that always matter most, but the underlying message that the company (your clients) provide employees flexible options to obtain additional protection from the unexpected.

So, what does this additional level of autonomy mean? It may be a motivator extending beyond mere employee satisfaction to foster a deeper sense of commitment and engagement at work. When employees are given choices that genuinely have good intentions for their well-being, they may associate those options with the company’s broader policies and culture—translating into employee loyalty. This type of engagement goes beyond compensation adjustments or mandatory benefits, it helps employees to have a meaningful voice in the workplace.

Can Voluntary Benefits Address Employee Burnout?

Employee burnout is often attributed to workload, unclear job roles, or poor management, but the safety nets provided by voluntary benefits may play a surprising role in combating it. It’s not that voluntary benefits solve work-related stress; rather, they can help alleviate external pressures that can spill over into the workplace.

The overlooked aspect here is that voluntary benefits can provide a buffer zone, helping reduce the cognitive load employees carry from their personal lives. When employees know they have support in non-work-related areas, it can reduce the compounded stress that builds up over time. In turn, this approach helps create a work environment where people feel they can bring their full selves without being weighed down by external worries.

The Unseen Role in Redefining Workplace Expectations

Voluntary benefits also shape expectations about what a “good” employer should provide. As employees become accustomed to a variety of flexible and individualized benefits, their perception of acceptable workplace standards evolves. Offering benefits such as group whole life insurance, group critical illness insurance, or group accident insurance doesn’t just meet existing expectations—it actively raises the bar. In MassMutual’s Q2 2024 surveys, we found that 62% of working Americans believe that voluntary benefits are essential to their financial well-being.²

This shift in expectations can serve as a form of competitive insulation. Companies that adopt a more expansive view of employee well-being through voluntary benefits set a higher standard that competitors may struggle to match. Over time, employees may develop a greater sense of pride and satisfaction, not necessarily because of the specific benefits themselves, but because of the forward-thinking approach they represent. It’s a way of redefining what it means to work in a supportive environment, making employees less likely to see greener pastures elsewhere.

Rethinking What Retention Truly Means

The word "retention" itself can feel transactional, suggesting that companies are merely trying to keep bodies in seats. However, voluntary benefits can allow companies to shift from this transactional mindset to fostering a genuine sense of belonging and community. Retention shouldn’t be about locking employees in; it should be about continually renewing their decision to stay by creating an environment where they truly feel they belong.

Voluntary benefits can also play a pivotal role in this renewal process by constantly adapting to meet the evolving needs of employees. For instance, offering voluntary benefits that shift focus from traditional perceptions of coverage options and benefits, reflects an employer's commitment to accompany employees throughout various life stages. When employees see this kind of foresight, it helps reshape their concept of career growth within the company—not just in terms of roles and promotions, but in life alignment with their evolving needs.

It Is Up to You to Shape the Perceptions

Group voluntary benefits are more than just supplementary perks—they’re a strategic lever that can help quietly shape company culture, potentially ease burnout, and redefine workplace expectations. By looking beyond the obvious financial incentives and transactional motivations, benefits professionals can tap into the deeper, less explored dimensions of employee satisfaction that truly differentiate a company. These “hidden benefits” don’t just help fill gaps in existing offerings; they can transform the way employees perceive their work and their relationship with the organization.