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An increasing number of Fortune 500 companies have pledged to raise wages and consumer advocates have criticized employers for providing low wages and meager benefits to employees. In response to these developments, many companies are now introducing voluntary benefit programs as part of their compensation package. Voluntary benefit programs allow employees to choose additional benefits that best meet their needs. These programs often include options for extra insurance coverage, retirement planning services, tuition assistance, and more. Companies may also offer discounts on products and services, such as mobile phone plans, fitness packages, and financial tools. By introducing voluntary benefits programs, employers can provide employees with the flexibility to customize their benefit package, while also lowering their overall costs. This article will explore the advantages and disadvantages of voluntary benefits programs for employers, employees, and society. Advantages for Employers The primary advantage for employers of introducing voluntary benefit programs is that it allows them to be more competitive in recruiting and retaining qualified employees. Additionally, voluntary benefits programs help employers control costs by providing employees with a range of options. This allows employers to reduce the expense of employer-sponsored benefits while still providing employees with a range of options. Another advantage to employers is that these voluntary benefits programs often encourage employees to take an active role in improving their lifestyle, health, and financial situation. Studies have shown that when employees are engaged in improving their lives, it can have a positive effect on their productivity. In addition, many of these programs allow employers to have an indirect impact on employee wellbeing through the use of discounts, rewards, and wellness components. Advantages for Employees For employees, voluntary benefits programs provide them with the ability to customize their benefits package to meet their individual needs. This can include options for childcare, or assistance with tuition for continuities, or retirement planning services. The flexibility of these programs also ensures that employees receive quality benefits that are appropriate for their individual needs and situations. Additionally, voluntary benefits programs can also provide financial security for employees by allowing them to plan for the future and invest in their long-term financial stability. This can be accomplished through programs such as retirement savings plans, tuition assistance, and employee discounts. Advantages for Society For society, voluntary benefits programs help reduce poverty and ensure the financial security of employees. Programs that extend tuition assistance or offer retirement savings plans can help prevent employees from struggling on inadequate incomes. Furthermore, these programs can also reduce the number of employees filing for public assistance if they face a financial emergency. Additionally, when employees have access to additional benefits, they are more likely to remain in their job, resulting in less turnover and less disruption to businesses. Finally, when employees can customize their benefits package, it also helps to ensure a diverse and inclusive workplace.

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