Supplemental Benefits Linked to Staff Retention
A new national study indicates that offering diverse supplemental insurance plans improves workforce outcomes and retention.
Updated on Oct. 13, 2026 in Financial Planning
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Lincoln Financial and the Employee Benefit Research Institute published a study showing that companies offering accident, critical illness, and hospital indemnity insurance report higher retention. Employers increasingly use these voluntary benefits to boost recruitment, performance, and workplace attendance.
Why it matters
The findings suggest that diversifying benefit packages can serve as a strategic tool for companies to stabilize their workforce. As employee demand shapes broker and employer decisions, the data highlights a clear connection between supplemental coverage and employee engagement.
The study surveyed 408 employers, 170 brokers, and 1,130 employees to analyze benefit impacts. Findings show 11% of employers offer the full trio of accident, critical illness, and hospital indemnity coverage.
The players
Lincoln Financial
This insurance and investment management company is headquartered in Radnor, Pennsylvania.
Employee Benefit Research Institute
This nonprofit organization conducts research and education regarding employee benefit programs in the United States.
The details
Data shows that 46% of employers providing all three supplemental products reported improvements in employee absenteeism. Additionally, 60% of insurance brokers identified worker demand as the primary driver behind employer decisions to expand these offerings.
Timeline
The study findings were released in October 2026.
Market Dynamics
The widespread adoption of voluntary supplemental insurance reflects the shift toward employee-driven demand in benefit procurement. This study updates the industry understanding of how consumer-driven preferences specifically translate into measurable employer retention statistics.
Employees should note that over three-quarters of workers expressed interest in supplemental coverage once they understood the descriptions. Because most employees spend four hours or less reviewing these materials, workers may benefit from dedicating more time to evaluating their specific insurance options.
The takeaway
Employers looking to improve retention rates should consider bundling supplemental health products to meet worker demand. Staff members are encouraged to spend more than four hours reviewing their enrollment materials to ensure they fully understand their available benefit options.
Further reading
Learn more about strategic approaches to Financial Planning for long-term security.
More information
Access the complete study report and interactive data to review the national findings.
Source note: This article includes information reported by MyChesCo.
Live Poll
Do you believe additional employer-provided supplemental health benefits improve employee retention?
