How small investments in vision, dental, and ancillary benefits reduce hidden costs of turnover and improve retention.

Employee retention is one of the biggest challenges facing employers today. High turnover leads to more than just the cost of recruiting a replacement; it brings hidden expenses like lost productivity, reduced morale, and the time it takes to train new employees. Studies estimate that replacing an employee can cost anywhere from 50% to 200% of their annual salary, depending on the role.

Yet many employers overlook a simple, cost-effective strategy for reducing turnover: offering ancillary benefits such as vision, dental, life, disability, and other supplemental coverages. These benefits do more than fill gaps in traditional health plans — they send a powerful message that your employees’ well-being matters. The result? A workforce that feels valued, stays healthier, is more productive, and is more likely to stay.

What are Ancillary Benefits?

Ancillary benefits are supplemental insurance options that complement standard health plans. Common examples include:

• Vision insurance
• Dental insurance
• Life insurance
• Disability coverage
• Hospital indemnity or accident plans

Employers can structure these benefits as employer-paid, voluntary, or a combination of both. Even modest contributions toward these benefits significantly increase participation rates — and the return on investment (ROI) can be substantial.

The ROI of Vision and Dental Benefits

Research consistently shows that vision and dental coverage deliver measurable financial returns:

• A National Association of Vision Care Plans study found that every $1 spent on a comprehensive eye exam yields $1.45 in savings through early disease detection, reduced healthcare costs, and improved productivity.
• Vision benefits can also uncover conditions such as diabetes, hypertension, and high cholesterol earlier, reducing long-term claims.
• Dental care plays a similar role: preventive check-ups reduce the risk of costly procedures and serious health issues linked to poor oral health, like cardiovascular disease.

In fact, some models estimate that employers save up to $7 for every $1 invested in vision benefits when factoring in early detection and productivity gains.

The Hidden Cost of Not Offering Ancillary Benefits

When ancillary benefits aren’t offered, employers may face:

• Increased turnover: Employees often leave for organizations with more comprehensive benefit packages.
• Lost productivity: Health issues like poor vision or untreated dental problems can directly affect work performance.
• Higher healthcare costs: Preventable conditions become more severe — and more expensive — without early intervention.
• Lower morale: Employees who feel their needs aren’t supported are less engaged and less loyal.

What seems like “saving money” by skipping ancillary benefits often translates into higher long-term costs in retention, recruitment, and employee healthcare.

Ancillary Benefits as a Retention Strategy

In today’s competitive labor market, employees expect more than just a paycheck. A well-rounded benefits package is often the deciding factor in accepting a job or staying with an employer.

• Younger employees value vision coverage for screen-heavy work.
• Families prioritize dental benefits for children and preventive care.
• All employees appreciate the sense of security that life and disability insurance provide.

These benefits foster loyalty by showing that employers care about the whole person, not just their role at work.

Maximizing ROI Through Strategic Design

To get the best return on investment, employers should:

• Tailor benefits to workforce demographics.
• Offer employer contributions to boost participation.
• Educate employees about the value and use of their benefits.
• Leverage tax advantages, such as pre-tax contributions and reduced payroll taxes.

With the right design and communication, ancillary benefits become a powerful tool for retention and cost control.

How RMC Group Can Help

At RMC Group, we understand that retention isn’t free — but turnover costs far more. Our team helps businesses review their current benefits, identify gaps, and design packages that maximize ROI. We work with employers to:

• Conduct benefits reviews to uncover cost-saving opportunities.
• Model the ROI of ancillary benefits for your workforce.
• Negotiate with carriers to provide competitive, affordable plans.
• Support employee education to ensure benefits are understood and used.

By aligning benefits with your company’s goals and employee needs, RMC Group helps you protect your bottom line while creating a workplace that attracts and retains top talent.

Investing in ancillary benefits like vision and dental insurance isn’t just about meeting expectations — it’s a strategic move that reduces turnover, cuts hidden costs, and strengthens employee loyalty. The ROI is clear: small investments in comprehensive benefits yield significant returns in retention and productivity.

If you’re ready to review your benefits strategy and uncover opportunities to increase employee retention, RMC Group is here to help. Contact our office today at 239-298-8210 or click here to fill out our contact form.