Do Your Employees Understand the Value of Your Voluntary Benefits?
As an employer, you understand the importance of providing a comprehensive benefits package to your employees. But if your HR communications aren’t driving home the value of these benefits in a way your employees understand, you’re missing the mark.
Right now, job satisfaction is at near record lows, with a recent Gallup Poll finding that 70 percent of Americans are dissatisfied at work. Moreover, a recent industry survey found that the perception of financial security is dropping, with 11 percent fewer people viewing themselves as financially secure as did two years ago.
Now consider this: the overall job satisfaction and feelings of financial security felt by your employees is directly related to their benefits education. In fact, that same industry survey found that for employees who considered their benefits education to be very good or excellent, 82 percent were highly satisfied at work. For those who were unsatisfied with their benefits education, that figure dropped to 26 percent.
The takeaway here, is that by overcoming common HR communications challenges and improving the way you present benefits information to your employees, you can help improve satisfaction, loyalty and productivity in the workplace.
Overcoming Common Challenges
One of the key mistakes employers make in providing benefits education to their employees is assuming that employees are receiving and understanding the value of their voluntary benefits plans. When polled, 40 percent of employees who were offered disability insurance reported that they felt uncomfortable making an informed decision about their enrollment options because they didn’t receive adequate educational materials describing the coverage. Yet, these benefits are very important to employees, with 82 percent of survey respondents putting a higher premium on voluntary benefits since the recession.
To get the biggest ROI for your employee benefits, consider the following tips:
1. Appeal to your employees’ individual learning styles by providing educational materials in a variety of formats. Employees appreciate having access to materials in various formats and many will use a combination of the resources you provide. Between printed brochures, informational videos, worksheets and interactive tools, you’ll make it easy for employees to choose the resources that help them best understand the value of their benefits options.
2. Create personalized communications materials that speak directly to your employees – no matter what stage of life they’re in. Targeted messages will resonate much more deeply with your employees, particularly among those in the 18-34 age range, who may have a difficult time understanding the value of enrolling in a benefits plan.
3. Don’t wait until open enrollment to educate employees about their benefits options. Make benefits education a year-round discussion by providing educational resources to your employees at least twice a year. This will help emphasize the value and importance of these plans, while giving employees plenty of time to consider the options that work best for their needs.
4. Give them time to review and understand the materials you provide. The industry survey found that employees who had at least three weeks to review and digest their benefits materials were much more satisfied with their benefits education as a whole. By providing employees with a minimum of three weeks to review benefits information, you give them time to ask questions, discuss enrollment options with family, conduct independent research or attend an informational meeting.
5. Provide a clear explanation of benefit so employees understand the value of the plan, the benefits they’ll receive and when to sign up.
As health care reform takes effect, it’s becoming even more important for employers to improve their benefits communications strategy. Employees will have questions about aspects of the Affordable Care Act and how it affects them and their benefits plans. Make sure you have the information they need by planning now.