Survey Shows Growing Employer Interest in Voluntary Benefits Expansion by 2027

A recent Gallagher survey shows nearly one-third of employers plan to expand voluntary benefits by 2027, recognizing their critical role in comprehensive benefits packages. Seventy percent say these offerings are essential to meeting employee needs.

Voluntary benefits are employee-paid insurance options, such as supplemental health, life, or disability coverage, offered through the workplace. These affordable, customizable benefits are facilitated by the employer and deducted from payroll, helping organizations support employee well-being and strengthen their overall benefits program.

The survey also showed that expanding voluntary benefits delivers significant advantages, including:

• Employee retention – Voluntary benefits are now a key part of modern benefit strategies, with 51% of employers recognizing their importance for attracting and retaining talent.
• Financial well-being – Two-thirds of employers see voluntary benefits, such as permanent life and identity theft insurance, as essential to supporting employees’ financial well-being and demonstrating organizational commitment to their workforce.
• Integration with core benefits – Public sector employers are increasingly integrating voluntary benefits, such as critical illness, hospital indemnity, and disability insurance, with core medical plans to streamline claims and simplify administration. While adoption remains relatively low today (5–14%), this trend is expected to accelerate in the coming years.

Employer Takeaway

As open enrollment for 2026 approaches, voluntary benefits will become a key focus for employers assessing their plan designs. Regularly evaluating your benefits package and staying current with industry trends is essential to maintain your organization’s competitive edge. Download the bulletin for more details.