Increasing Employee Understanding and Appreciation of Benefits
May 22, 2013
One of the obstacles many organizations face, in regard to employee benefits, is implementing an effective approach to employee communication. The average employer spends 41 cents per dollar of payroll on employee benefits, which equates to 29% of the employee’s total compensation package. One study suggests employees only understand/appreciate between 31% and 68% of the cost or market value of their benefits.
As the technology Industry continues to experience rapid growth and expansion, employers focus on best practices to attract and retain a competitive and quality workforce, to meet corporate goals and objectives. Employee benefits play a key role in developing morale and a productive, loyal employee base. To realize the strongest return on your investment, consider the following:
- Total Compensation Statement – Develop a personalized, full-color, easy to read, employee benefit statement, which communicates the full value of employees’ benefits and compensation. Charts and graphs are very effective to increase understanding and value.
- C-Suite Commitment – For many companies, the C-Suite sets the cultural tone for the company. A solid commitment, with active participation in benefits related events, can make a significant impact.
- Custom Communication –Think about how company culture communicates internally, and apply these best practices. Is it a morning meeting? Coffee social? BBQ or happy hour style event? Utilize custom communication pieces to focus on one or two key components at a time throughout the course of the year. Increase availability of insurance information by providing all vendors and carrier contact information on one convenient wallet-size benefits card.
- Employee Participation in Benefits – Many companies have seen significant positive results by drawing employees into the process to form a committee to discuss benefits, provide survey information, and help reach out to their perspective departments.
- Company Wellness – Creating an effective wellness plan, with incentives that align with the employee benefits program, is a proven way to increase a consumer awareness mentality and open discussions about health and wellness in your organization. You’ll need a strong strategic partner to design and implement a program in phases, which will speak directly to your culture and workforce for maximum impact.
- Technology – Advances in employee benefits administration and enrollment technology solutions are making these services more affordable to organizations of all sizes. Many insurance carriers offer cloud-based solutions to help decrease cost, increase Human Resource efficiencies and improve employee communication. Some solutions offer Dynamic Benefit Plan Comparisons, videos and other interactive educational tools to help engage employees during the enrollment process. Offering year-round access to the Employee Portal, with a library of information, also helps decrease the number of questions HR staff receive from employees throughout the year.
The role of the health insurance broker has evolved. With many organizations looking to do more with less, HR departments are seeking an operational partner with a strategic view to help make their lives easier and increase employee engagement. The opens in a new windowEmployee Benefits Group is actively present throughout the year assisting in the needs of your organization, both those mentioned above and any others unique to your business.