Most employers say the convenience of payroll deductions is a major reason for offering voluntary benefits to employees, according to a new study.
The authors of the fifth annual MetLife Study of Employee Benefit Trends report, released by a unit of MetLife Inc., New York, say 51% of employers surveyed cited payroll contributions as a major reason to offer voluntary benefits, which are paid largely or entirely by employees.
The ease of buying group rather than individual insurance was cited as a key advantage by 45%.
The same percentage of employers named better rates offered by group over individual products as the main attraction of voluntary benefits.
Other advantages listed include:
- No medical exams for insurance (40%).
- Savings discipline provided by payroll deductions (39%).
- Time savings (38%).
- The benefit of having the employer screen for best available products (38%).
- The availability of objective information from the employer (36%).
- Better customer service (25%).
Employees themselves generally agreed with those advantages, with 63% saying payroll deduction was a convenience, and 58% citing the fact that group insurance required no medical exams.
In addition, 55% cited the savings discipline of payroll payments; 47%, better rates; and 45%, time savings.