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The Value of Ancillary Benefits

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It’s a balancing act when it comes to employee satisfaction and the employer bottom line. To attract and retain top talent, employers are under increasing pressure to offer competitive packages while keeping their budgets in line.

So where do ancillary benefits fit into all this?

First, “ancillary” deserves more credit. As the supporting role to the star of employee compensation packages — medical coverage — ancillary benefits often get overlooked, but provide value that spans in both directions: to the employer and employee alike. For example, the employer can make lower FICA contributions by taking advantage of Section 125 of the IRS code, therefore keeping costs down while staying competitive in the marketplace. For employees, advantages include an affordable cost since premiums are lower (risk is spread across a large pool) and a way to get preventive care before serious issues arise1.

There’s no better time to give ancillary benefits more consideration. According to the 2016 Guardian Workplace Benefits Study, perceived value of benefits has declined since 2014. That directly corresponds with employee job satisfaction and loyalty to their company: 84% of employees with high benefits satisfaction report high job satisfaction and 74% of employees with high benefits satisfaction want to stay with their current employer for 5+ years2.

Ancillary benefits fill the gaps of a limited benefits package, keeping employees healthier and happier, resulting in a more productive workforce.

1 What are Ancillary Products? Retrieved September 7, 2017, from
2 The Guardian Workplace Benefits StudySM: Fourth Annual, 2016.