Survey Finds One-third of Employers to Expand Voluntary Benefits by 2027

A recent survey from Gallagher, a global insurance brokerage, risk management and consulting firm, found that nearly one-third of employers are expected to expand voluntary benefit offerings by 2027.

The survey demonstrates the significance of voluntary benefits in modern benefits packages, with over two-thirds (70%) saying they are driven to offer these perks to ensure their benefits package is comprehensive.

Voluntary benefits are employee-selected insurance coverage and services offered through the workplace. They are characterized by being employee-paid, facilitated by the employer, managed through a carrier or enrollment firm, and deducted from payroll. These benefits have gained popularity in recent years as a strategic component of employer offerings due to their affordability, customization and positive impact on employees’ well-being.

The survey also revealed that providing expanded voluntary benefits can offer several key advantages, including:

• Employee retention—Voluntary benefits are seen as an essential element of modern benefits strategies for attracting and retaining talent in competitive markets. More than half of employers (51%) agreed that voluntary benefits are important for talent retention.
• Financial well-being—According to the survey, two-thirds of employers consider voluntary benefits important for their employees’ financial well-being. Financial-focused benefits, such as permanent life and identity theft insurance, can help employees manage financial risks and reduce stress while demonstrating the business’ commitment to their workforce’s well-being.
• Integration with core benefits— Employers are exploring the integration of voluntary (e.g., critical illness, hospital indemnity, disability insurance) and core health benefits to help streamline claims and reduce administrative burdens. The integration of voluntary benefits with core medical plans is currently low (ranging from 5% to 14%) but is expected to grow in the coming years.

Employer Takeaway

As 2026 open enrollment approaches, voluntary benefits are likely to be an area of interest for employers reviewing their plan design and benefits offerings. Employers should review their benefits package offerings and continue to monitor trends to stay competitive.

Contact us for more voluntary benefits resources.