How voluntary benefits strengthen teams and businesses alike

An affordable way to reduce attrition and safeguard the bottom line

For small to midsize business leaders, every hire and every dollar matters. Rising costs and a tight talent market make it harder to compete on salary alone. For brokers, that creates an opportunity: helping clients strengthen retention and protect margins without adding to payroll. Voluntary benefits deliver on both fronts by keeping great people engaged while reducing costly turnover, at little to no added expense.

What are voluntary benefits?

Voluntary benefits are employee-paid options—offered through the workplace, often at discounted group rates—that include coverage like life, accident, disability, and many more. They give employees protection they value, while giving employers a way to enhance compensation without raising fixed payroll. These benefits have evolved from "nice-to-have" extras to essential benefits that employees expect and rely on.  In today’s multigenerational workforce, these options provide the flexibility to meet diverse needs and life stages.

Lower costs, larger margins

In a recent survey of 500+ small to midsize business leaders, voluntary benefits emerged as a simple, cost-flexible driver for growth and resilience¹:

·       98% agreed they help attract and retain talent

·       60%+ said they strengthen their compensation package without raising salaries

·       73% said they signal leadership’s care and commitment

For these leaders, voluntary benefits offer a way to nurture a strong company culture by keeping teams engaged while investing their payroll savings back into the business.  These benefits help to demonstrate that an employer is invested in supporting the whole employee, not just their day-to-day work.

Reduce the risk, reinvest the savings

Turnover can take a big toll on small to midsize businesses. Every time a valued employee walks out the door, it creates more than just a vacancy, it disrupts culture, drains productivity and triggers a costly process.  Our survey revealed replacing an employee costs 20 – 30% of their salary. For someone earning $75,000, that's an unplanned additional $15,000 – $22,500 expense to replace them every time someone walks out the door.¹   But here's the good news: voluntary benefits can help reduce turnover, saving money that would otherwise be spent on recruiting and training.  Those savings can be reinvested into growth initiatives like technology upgrades, employee development or used to keep the business steady when times get rough. And because voluntary benefits are employee-funded, these gains come at no additional direct cost to the business.

The hidden barriers: awareness & perceived complexity

Beyond hard savings, voluntary benefits reduce stress, improve productivity, and reinforce trust—advantages that lean teams need most. That translates into stronger workplace culture and better retention.

The catch? Nearly 1 in 3 small to midsize business leaders told us no one has ever discussed voluntary benefits with them. For business leaders, it means many are missing out on a proven way to protect their margins and keep teams intact. For brokers, it signals an untapped opportunity to start conversations that competitors aren’t having.

Perceived complexity is the second barrier. Many leaders assume voluntary benefits require heavy administration or technical expertise they don’t have. In reality, most of our respondents already have digital platforms in place, they just need the right broker and carrier to partner with. With customer-centric carriers like Equitable offering turnkey support for education and enrollment, adopting voluntary benefits is a low-effort, high-impact move that strengthens retention and margins at the same time.

The takeaway

In times when every dollar counts, voluntary benefits stand out as a way that to protect margins and support growth—giving small to midsize businesses a cost-flexible way to compete and stay resilient.

Yet our research shows a substantial number of business leaders have never been approached about voluntary benefits. For small to midsize business leaders, that means many are missing out on a proven retention tool. For brokers, it highlights a powerful opportunity to start conversations others aren’t having.

With the right partner, voluntary benefits are simple to implement, easy to manage, and high impact for employees and the bottom line.

Have questions about voluntary benefits? Quote Equitable today.