Voluntary benefits: These employee ‘perks’ are having a moment.

Employers are expanding access to voluntary benefit packages to help employees who want more flexibility and options.

The way employers offer employee benefits is rapidly changing and plan sponsors are looking at every angle to improve the business of benefits. A significant shift is the increase in offering voluntary benefits. Now nearly 1 in 3 employers plan to expand voluntary benefits by 2027.

‘Perks’ that employees have previously viewed as menu sides are becoming more widely available. This could mean more popular benefits like pet insurance or general wellness benefits.

They are becoming a way for employers to offer a more holistic package to employees. The term voluntary benefits may sound new, but they cover so many options, everyone has likely enrolled in them at some point. Beyond the above examples, there is also life insurance and lifestyle spending accounts (FSAs). Some plan designs also identify vision and dental plans under this umbrella.

Employees want flexibility and personalization and benefits that are more than just health and retirement.
Two-thirds of employers now use voluntary benefits as supporting financial security and reducing stress.
Creative perks like sabbaticals, student loan help, or pet insurance are popular for employees viewing benefits as a more holistic experience.

For fiduciaries and HR leaders, this increase matters a lot. Voluntary benefits sit at the intersection of compliance, finance, and employee well-being. When managed well, they can improve company culture and retain or attract talent. When managed poorly, they create more cost, waste, and confusion.

Not every voluntary benefit or “perk” adds value. Some look good on paper but offer little substance or create compliance risk. Employers should vet vendors, clarify communications, and understand the financial implications even if the employee pays the full benefit.

Fiduciaries are key to sifting through the options and ensuring cost and compliance. Think about the cost-benefit trade-offs, ensuring transparency, and tracking usage to make sure the benefits make sense. If they are underutilized, they are just in the way of employee satisfaction. Plus, employers should avoid just using voluntary benefits to fill coverage gaps in otherwise flawed plans. Employers need to be ready before simply adding the benefit menu for their teams.