New Eastbridge report explores variations in benefits by employer size and industry

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Feb 04, 2025, 08:00 ET

Voluntary coverage continues to be popular with employers and employees despite economic pressures

AVON, Conn., Feb. 4, 2025 /PRNewswire/ -- Inflation has had relatively little impact on employees' willingness to pay for many of their benefits, and employers expect that trend to continue in the next few years, according to a new study from Eastbridge Consulting Group. Eastbridge's "Employer Size and Industry Demographics for the Voluntary/Worksite Market – MarketVision™—The Employer Viewpoint^©" study shows more than two-thirds of employers found participation in their voluntary benefits plans increased or didn't change in the past two years of inflation. Firms with fewer than 50 employees are the most likely size to say inflation hasn't affected voluntary enrollment, while employers in the personal services and financial/insurance/real estate sectors are significantly more likely than other employers to say enrollment grew during inflation.

Other findings in the report include:

Medical, prescription drug, dental and vision are the most common health products employers of all sizes offer, but the largest employers with 10,000 or more employees are most likely to also offer cancer, critical illness and hospital indemnity coverage.
Very small employers with fewer than 50 employees are the least likely to use a benefits administration system, or to have adapted their benefits enrollment for remote or hybrid employees.
More than a third of education employers plan to add a new employer-funded benefit or a new voluntary benefit in the next 12–18 months.
Construction employers are most likely to offer voluntary prescription drug coverage and least likely to offer critical illness.

"There are many common themes for employers across industries and sizes, but different demographic segments also have key differences. It's important for carriers and brokers in the voluntary market to understand these nuances so they can best meet their clients' needs and be more competitive," said Nick Rockwell, Eastbridge president.

The "Employer Size and Industry Demographics for the Voluntary/Worksite Market – MarketVision™—The Employer Viewpoint^©" report identifies how employer offerings, needs and attitudes about voluntary benefits vary by employer size and industry. The report covers topics including the benefits employers offer and their reasons for offering voluntary products; sales potential for various products; changes employers plan to make in their benefits program; selection criteria for voluntary carriers; enrollment, education and communication preferences; and online administration and benefit administration systems. Employers are segmented by sizes from as few as 10 to more than 10,000 employees, and by industries including business services; personal services; construction; manufacturing; retail and wholesale trade; finance, insurance and real estate; health care; education; and information technology and software.

Information about obtaining a copy of the "Employer Size and Industry Demographics for the Voluntary/Worksite Market – MarketVision™—The Employer Viewpoint^©" report is available on Eastbridge's website.

About Eastbridge Consulting Group
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving companies focused on the voluntary/worksite benefits market in the United States and Canada. Follow Eastbridge on LinkedIn at https://www.linkedin.com/company/eastbridge-consulting-group.