IDS HR Studies Update 769, March 2004

Voluntary benefits

• Considers current trends in voluntary benefits provision
• Looks at how companies negotiate and promote special deals and discounts for their staff
• Includes details of the voluntary benefits packages at 12 organisations.

In contrast to conventional employee benefits packages, which they complement, voluntary benefits are not funded by the employer. Instead, the company arranges preferential rates on a variety of products and services that employees can take advantage of as they see fit.

The market for voluntary benefits has heated up over the last few years as a growing number of suppliers have come on to the scene. The wide reach of the Internet and rise of e-commerce has provided the tool with which retail and service sector organisations can exploit the vast potential offered by worksite marketing.

But this expansion is not only being driven by suppliers. Employers are also recognising the advantages of arranging voluntary benefit packages. First and foremost, voluntary benefits are seen as a (potentially at least) cost-free means of improving what is on offer to the employees. They can be used to enhance traditional benefits provision and, for some organisations, they are the natural precursor (in others, the alternative) to the introduction of a flexible benefits package.

This in-depth article is the lead feature article in the March 2004 IDS HR Studies Update.