One of the most underutilized tools in the small employer benefits toolkit is the voluntary benefit. These are products — typically insurance or financial wellness programs — that employees can elect and pay for through payroll deduction, often at group rates that are significantly better than what they could obtain individually.
The appeal for employers is straightforward: you can offer a richer, more comprehensive benefits package without increasing your own cost. For employees, the group purchasing power and payroll deduction convenience make voluntary benefits genuinely valuable.
The most popular voluntary benefits in 2026 include critical illness insurance, which pays a lump sum upon diagnosis of a covered condition like cancer or heart attack; accident insurance, which provides benefits for injuries resulting from accidents; hospital indemnity insurance, which pays a daily benefit for hospital stays; and identity theft protection, which has seen strong uptake as data breaches have become more common.
Legal services plans have also gained traction, particularly among employees who are homeowners, parents, or dealing with estate planning needs. The ability to access an attorney for routine legal matters — will preparation, real estate transactions, traffic violations — at no additional cost is a benefit that resonates across demographics.
Student loan repayment assistance and financial wellness programs are increasingly popular with younger employees. While these require more employer involvement than traditional voluntary benefits, they can be powerful differentiators in recruiting.
The key to a successful voluntary benefits program is communication. Employees who don't understand what's available won't enroll, and low enrollment undermines the value of the program. A well-designed enrollment communication strategy — including clear explanations of each benefit, real-world examples of when they pay, and easy enrollment tools — is essential.
Work with your benefits advisor to identify the voluntary benefits that best match your workforce demographics and complement your core benefits package. The right combination can meaningfully improve your total compensation story without adding to your benefits budget.
