What types of voluntary benefits do employees typically want, and how do I add them to our benefits package?

TL;DR: Employees most want voluntary benefits that address financial wellness, work-life balance, and health—such as student loan repayment assistance, pet insurance, mental health support, and legal services. To add them, survey your workforce, partner with a benefits broker or use a voluntary benefits platform, communicate clearly during open enrollment, and manage costs through employee-paid premiums.

Offering a competitive benefits package is essential for attracting and retaining talent, but traditional benefits like health insurance and 401(k) plans are no longer enough. Voluntary benefits—also called supplemental benefits—are perks employees can choose to pay for themselves, often at a group discount. They allow employers to offer a wider array of options without significantly increasing overhead. Understanding which voluntary benefits employees actually want and how to implement them can boost satisfaction and loyalty.

What are the most popular voluntary benefits employees are asking for in 2026?

The most requested voluntary benefits are those that solve everyday financial and lifestyle challenges. Student loan repayment assistance leads the list, followed by pet insurance, mental health and counseling services, financial planning tools, and legal identity theft protection. Employees also highly value critical illness insurance and hospital indemnity plans that provide lump-sum cash payments during medical emergencies.

• Student loan repayment: Over 40 million Americans have student debt; employers who contribute monthly can dramatically reduce financial stress.
• Pet insurance: With pet ownership rising, coverage for veterinary bills is a top perk, especially for younger workers.
• Mental health support: Access to therapy apps, Employee Assistance Programs (EAPs), and wellness coaching is increasingly expected.
• Financial wellness tools: Budgeting apps, investment advice, and emergency savings accounts help employees feel secure.
• Legal and identity theft services: Prepaid legal plans and identity monitoring are growing in demand due to rising cyber threats.

These benefits appeal to diverse demographics. Millennials and Gen Z tend to prioritize student loan help and mental health, while older employees may value critical illness or long-term care insurance. Offering a mix ensures broad appeal. Importantly, these benefits are often low-cost or no-cost for the employer because employees pay the full premium through payroll deductions, yet the group rate is lower than individual coverage.

Employers can use anonymous surveys or pulse polls to identify which specific benefits resonate with their workforce. For example, a company with many remote workers might see high interest in home office stipends or virtual mental health services, while a field-based workforce may prefer accident insurance or hospital indemnity.

How do I choose which voluntary benefits to offer my employees?

Choosing the right voluntary benefits starts with understanding your employee demographics and their needs. Survey your staff to rank their preferences, then evaluate each benefit’s cost to the company (often minimal) and the administrative ease of implementation. Focus on benefits that align with your company culture and fill gaps in your existing core benefits.

• Conduct an employee survey: Use a simple tool like Google Forms or a benefits administration platform to ask employees what they value most.
• Analyze demographic data: Consider age ranges, family status, income levels, and common life events (e.g., new parents may want childcare support).
• Evaluate cost and administration: Many voluntary benefits are employee-paid, so employer cost is low, but you still need to manage payroll deductions and carrier relationships.
• Review existing core benefits: Avoid duplication—if you already offer a robust mental health program, emphasize that before adding another similar perk.

Once you have a shortlist, pilot the top two or three benefits with a small group or during a special enrollment window. Gather feedback before a full rollout. Remember, voluntary benefits should be optional—employees can opt in or out as they wish, so you want to offer options that have clear value and are easy to use.

Another key factor is the carrier's reputation and customer service. Choose providers that are known for timely claims processing and good support, as your employees will interact with them directly. Many benefits brokers can help you vet carriers and even bundle services for a cohesive offering.

What is the process to add voluntary benefits to my company’s benefits package?

Adding voluntary benefits follows a step-by-step process: research and select benefits, choose a carrier or platform, set up payroll deductions, communicate to employees, and manage ongoing enrollment. Start by partnering with a benefits broker or using an online benefits marketplace that aggregates multiple voluntary benefit providers.

• Step 1: Assess needs and budget. Survey employees and decide which benefits you’ll offer. Determine if you will contribute to any cost or let employees pay fully.
• Step 2: Select carriers. Request quotes from reputable insurers or use a benefits platform that offers a suite of options.
• Step 3: Integrate with payroll. Work with your payroll provider to set up pre-tax or post-tax deductions for each benefit.
• Step 4: Communicate during open enrollment. Provide clear materials—videos, comparison charts, and decision guides—to help employees understand and enroll.

Many employers use a benefits administration system (e.g., Zenefits, Gusto, or a dedicated benefits platform like Unum) that can handle the entire lifecycle from enrollment to deduction management. These platforms often have built-in employee portals where workers can view and elect benefits. This reduces administrative burden and ensures accuracy.

After initial enrollment, you should review participation rates and adjust your offerings annually. If a benefit has very low uptake, consider replacing it. Also, monitor changes in laws—some voluntary benefits, like student loan repayment, may have tax implications you need to address with your accountant or benefits consultant.

How do I communicate voluntary benefits to my employees effectively?

Effective communication about voluntary benefits requires clear, personalized messaging that highlights the value and ease of enrollment. Use multiple channels—email, intranet, onboarding sessions, and one-on-one meetings—to explain each benefit in simple terms. Emphasize that these are optional but available at group rates, making them more affordable than buying individually.

• Create a benefits summary sheet: List each benefit, what it covers, the employee cost, and how to enroll.
• Use real-life scenarios: Show examples, such as how pet insurance saves $500 on a surgery or how student loan contributions reduce interest over time.
• Host live Q&A sessions: Invite carriers to present and answer questions during open enrollment.
• Leverage decision-support tools: Online calculators or quizzes can help employees decide which benefits fit their lives best.

Because voluntary benefits give employees options, communication should be informative without being pushy. Avoid jargon—most employees are not insurance experts. Use bullet points and short paragraphs to make information digestible. Also, consider highlighting benefits that are especially relevant to certain groups, such as remote workers or new parents, in targeted emails.

Don’t underestimate the power of testimonials. If a few employees have used a voluntary benefit successfully (e.g., a critical illness payout), ask them to share their story (with permission). This personal touch can boost enrollment significantly. Finally, ensure that communications are accessible for employees with disabilities or language barriers.

What are the costs and legal considerations of offering voluntary benefits?

Voluntary benefits are typically 100% employee-funded, so employer costs are limited to administrative overhead—payroll system changes, communication, and time spent managing carrier relationships. However, some benefits may require employer contributions to be competitive (e.g., student loan matching). Legal considerations include compliance with ERISA, tax treatment of deductions, and state-specific insurance regulations.

• Tax implications: Pre-tax deductions (e.g., via cafeteria plans) can save employees money but require a Section 125 plan. Post-tax deductions are simpler but offer no tax savings.
• ERISA compliance: Certain benefits, like group insurance, may be subject to ERISA reporting and disclosure rules if the employer contributes.
• State insurance laws: Some benefits, especially insurance products, are regulated at the state level; ensure your carrier is licensed in all states where you have employees.
• Non-discrimination rules: Under the ACA, certain employer-paid benefits must be offered to all eligible employees uniformly.

Most voluntary benefits for small to mid-size businesses are straightforward, but it's wise to consult a benefits attorney or broker to ensure compliance. For example, if you offer a wellness program tied to a health insurance premium discount, you must comply with HIPAA wellness program rules. Also, if you offer deferred compensation like student loan repayment, there may be implications under the Internal Revenue Code.

Costs for employees vary widely by age, location, and coverage level. For instance, pet insurance for a cat is cheaper than for a dog, and critical illness premiums are higher for older employees. Provide transparent pricing so employees can make informed decisions. Consider offering a small employer contribution (e.g., $50/month toward a voluntary benefit of their choice) to encourage participation and show you care.

How do I measure the success of a voluntary benefits program?

Success of a voluntary benefits program can be measured through participation rates, employee satisfaction surveys, and impact on retention and recruitment. Monitor which benefits are most used and whether they help address specific pain points like financial stress or work-life balance. Also track administrative costs and any feedback about the enrollment process.

• Participation rate: Aim for at least 20-30% enrollment in at least one voluntary benefit within the first year; lower rates may indicate poor communication or lack of interest.
• Employee feedback: Survey employees after open enrollment to gauge satisfaction and gather suggestions for new benefits.
• Retention metrics: Compare turnover rates before and after adding voluntary benefits; a decrease in voluntary turnover may be linked to your offerings.
• Cost-benefit analysis: Calculate the employer cost per enrolled employee versus the perceived value (e.g., via a net promoter score). Low cost with high satisfaction is a win.

Benchmarking against industry peers can also be useful. For example, tech companies often have higher adoption of student loan benefits, while manufacturing firms may see more interest in accident and disability insurance. If your participation rates are significantly below industry norms, consider adjusting your communication strategy or benefit mix.

Don't forget to evaluate the administrative burden. If managing multiple carriers becomes too complex, consider consolidating with a single voluntary benefits platform that handles billing, enrollment, and support. Ultimately, the goal is to offer benefits that employees truly value—and that you can deliver efficiently.

Key Takeaways

• The most desired voluntary benefits include student loan repayment, pet insurance, mental health support, financial wellness tools, and legal services.
• Survey your employees and analyze demographics to select benefits that align with their needs and your company culture.
• Adding voluntary benefits is a step-by-step process: research, choose carriers, set up payroll deductions, communicate, and manage enrollment.
• Effective communication using multiple channels and decision-support tools boosts participation and satisfaction.
• Employer costs are typically low as employees pay premiums, but be aware of tax and legal compliance requirements.
• Measure success through participation rates, employee feedback, and impact on retention to continuously refine your offerings.

This content reflects general insurance and benefits guidance as of July 28, 2026. Laws, regulations, and market offerings vary by location and may change. We recommend consulting with a licensed benefits advisor or insurance professional to tailor a program to your specific company needs.