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Learn to develop a benefits awareness plan that positions both employees and employers for success.
November 20, 2023
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Many businesses rely on employee benefits to stand out and retain talent in a high-demand marketplace. According to The Conference Board, more than 85% of employers now have formal policies around benefits like paid leave, parental leave, and flexible working hours in the workplace.
Yet, benefits participation could be better.
Why? In most cases, employees need to be made aware of the benefits their company offers. Research from LIMRA reveals that even for the most widely used benefits, such as medical and dental insurance, at least 30% of employees are unsure what is covered.
So, how can an organization ensure employees know and utilize all the benefits available to them? Employers and HR need to work towards educating employees about company benefits and engaging with them to gain deeper insights.
The workforce’s demographic has diversified, blending Millennials, Gen X-ers, Baby Boomers, and Gen Z. Consider utilizing a mix of verbal, written, and digital communication channels for benefits communication. Try using instant messaging for Gen Z, face-to-face interactions for Baby Boomers, and email or chat while communicating with Gen Xers and Millennials.
Besides communicating clearly, guiding employees through the decision-making process is essential. Hold interactive Q&A sessions to help the teams select the benefits that suit them the most. Also, ensure you share clear definitions of the terms and conditions of various employer-offered benefits options. In addition, consider utilizing bots and platforms to inform and educate employees about benefits selection.
Employees often think about their benefits during open enrollment or significant life events. Regular communication enhances understanding and utilization. Consider developing a strategy encompassing different channels and a calendar to keep employees engaged and informed. Use critical months to promote specific programs and invite your Employee Assistance Program vendor for presentations.
Unless it’s essential, employees tend to avoid complex tasks. A complicated signup process or difficult access method can discourage adoption and use. Consider simplifying the existing procedures; the easier the process will be, the more likely employees will utilize it.
Employee surveys provide honest feedback on benefits. These surveys also help understand future needs, enabling employers to customize, adapt, and build suitable plans. Ensure that surveys are conducted regularly to gain insights into employees’ opinions about benefits offered and to manage more effectively.
Remember flexibility and personalization are vital in designing employee benefit offerings. Enable employees to choose from a benefits basket having core and optional benefits. This approach enhances utilization and is likely cheaper than everyone having the same coverage.
To ensure employee awareness and, most importantly, utilization, more needs to be done regarding the benefits offered. Generating awareness requires significant effort, a step often overlooked by many companies. Bridge this gap by proactively engaging employees and providing effective communication and understanding of the offered benefits.
Want to know more about startups and what it takes to get started? Since 2006, Escalon has helped thousands of startups get off the ground with our back-office solutions for accounting, bookkeeping, taxes, HR, payroll, insurance, and recruiting — and we can help yours, too. Talk to an expert today.
This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal or accounting advice in this article. If you would like to engage with Escalon, please contact us here.
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