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. The SECURE 2.0 Act allows employers to make matching contributions to retirement accounts based on student loan payments.
• Pet insurance: With pet ownership rising, coverage for veterinary bills is a top perk, especially for younger workers who treat pets as family members, often prioritizing their care over their own health expenses.
• Mental health support: Access to therapy apps, Employee Assistance Programs (EAPs), and wellness coaching is increasingly expected, especially as remote work blurs boundaries and stress levels rise.
• Financial wellness tools: Budgeting apps, investment advice, and emergency savings accounts help employees feel secure, reducing the financial stress that often impacts productivity and focus.
• Legal and identity theft services: Prepaid legal plans and identity monitoring are growing in demand due to rising cyber threats and identity fraud cases, with identity theft reports reaching record highs in recent years.

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—a clear advantage you can highlight to your team.

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. If your workforce is diverse, consider offering a core bundle plus à la carte options to ensure everyone finds something valuable.

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. Homewell Insurance recommends beginning with a needs assessment.

• Conduct an employee survey: Use a simple tool like Google Forms or a benefits administration platform to ask employees what they value most, and include an open-ended question for benefits you haven’t considered.
• Analyze demographic data: Consider age ranges, family status, income levels, and common life events (e.g., new parents may want childcare support, while older workers might prioritize retirement planning or long-term care insurance).
• 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; weigh the administrative burden against the potential benefit.
• Review existing core benefits: Avoid duplication—if you already offer a robust mental health program through an EAP, promote that before adding a separate mental health app to prevent overlap and confusion.

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. This pilot approach reduces risk and allows you to fine-tune the offering.

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. Check online reviews and ask for references to verify reliability. Many benefits brokers can help you vet carriers and even bundle services for a cohesive offering, simplifying administration and potentially securing better rates.

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, which can save time and streamline comparisons.

• 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; even a small employer contribution, like $25 per month toward a benefit of choice, can boost participation and goodwill.
• Step 2: Select carriers. Request quotes from reputable insurers or use a benefits platform that offers a suite of options, comparing both coverage features and administrative support.
• Step 3: Integrate with payroll. Work with your payroll provider to set up pre-tax or post-tax deductions for each benefit, ensuring accurate coding and compliance with applicable tax rules.
• Step 4: Communicate during open enrollment. Provide clear materials—videos, comparison charts, and decision guides—to help employees understand and enroll, and schedule reminders to drive action.

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, especially if you have a distributed workforce.

After initial enrollment, you should review participation rates and adjust your offerings annually. If a benefit has very low uptake, consider replacing it to keep your program relevant and avoid clutter. Also, monitor changes in laws—some voluntary benefits, like student loan repayment, have new tax advantages under SECURE 2.0, so consult with your accountant or benefits consultant to stay current.

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, and stress the convenience of payroll deduction.

• Create a benefits summary sheet: List each benefit, what it covers, the employee cost, and how to enroll, using plain language and visual icons to improve comprehension.
• Use real-life scenarios: Show examples, such as how pet insurance can save $500 on an emergency surgery or how student loan contributions reduce interest over time, making the benefits tangible.
• Host live Q&A sessions: Invite carriers to present and answer questions during open enrollment; recording sessions helps employees who can't attend live.
• Leverage decision-support tools: Online calculators or quizzes can help employees decide which benefits fit their lives best, especially for those overwhelmed by choices.

Because voluntary benefits give employees options, communication should be informative without being pushy. Avoid jargon—most employees are not insurance experts—and instead use relatable terms like “help with vet bills” instead of “pet health coverage.” 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 to increase relevance and engagement.

Don’t underestimate the power of testimonials. If a few employees have used a voluntary benefit successfully (e.g., a critical illness payout or identity theft resolution), ask them to share their story (with permission). This personal touch can boost enrollment significantly, as employees trust their peers’ experiences more than marketing materials. Finally, ensure that communications are accessible for employees with disabilities or language barriers, offering translations or accessible formats if needed.

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—which are often minimal compared to employer-paid benefits. However, some benefits may require employer contributions to be competitive (e.g., student loan matching), and offering such contributions can be a powerful retention tool. 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; for student loan repayment, SECURE 2.0 now allows employers to make matching contributions to retirement plans based on student loan payments, treating those as elective deferrals for matching purposes.
• ERISA compliance: Certain benefits, like group insurance, may be subject to ERISA reporting and disclosure rules if the employer contributes; voluntary benefits that are employee-paid and not employer-endorsed may be exempt, but consult with an expert.
• 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, including remote workers in different states.
• Non-discrimination rules: Under the ACA, certain employer-paid benefits must be offered to all eligible employees uniformly; for voluntary benefits, avoid favoring highly compensated employees to prevent compliance issues.

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, so get expert advice on structuring these benefits.

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—include sample rates for different age brackets or coverage tiers in your communications. Consider offering a small employer contribution (e.g., $50/month toward a voluntary benefit of their choice) to encourage participation and show you care, which can have a significant impact on engagement.

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 to identify areas for improvement.

• 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, lack of interest, or pricing issues. Analyze participation by demographic to spot gaps.
• Employee feedback: Survey employees after open enrollment to gauge satisfaction and gather suggestions for new benefits, and use post-enrollment surveys to measure awareness and understanding.
• Retention metrics: Compare turnover rates before and after adding voluntary benefits; a decrease in voluntary turnover may be linked to your offerings, but also control for other factors like market conditions.
• 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; consider calculating the ROI of reduced turnover or improved productivity.

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. Industry surveys and benefits reports can provide benchmarks; if your participation rates are significantly below industry norms, consider adjusting your communication strategy or benefit mix to better match employee needs.

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. This can reduce errors and save HR time, allowing your team to focus on strategic initiatives. Ultimately, the goal is to offer benefits that employees truly value—and that you can deliver efficiently, creating a win-win for both parties.

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, including new SECURE 2.0 provisions for student loan matching.
• 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 September 3, 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.