Employers have the ultimate responsibility on how to effectively communicate benefits information to employees. It has a tremendous impact on how well the programs are understood, utilized and perceived by employees. If that understanding does not exist, it’s a critical failure of the company’s leadership team.
“If you don’t know if your employees appreciate the benefits you provide, you’re not communicating or educating enough,” says P.J. Insana, a partner at Britton Gallagher. “Either you haven’t tried to find out or you didn’t research enough to discover how they actually feel.”
A big communication mistake most employers make is not fully educating employees on the full scope of what is available. Benefits packages are more than what the co-pay is when you get sick or how much is paid for prescription drugs.
“Everybody focuses on medical all the time, but are your employees familiar with what a disability policy would pay for?” Insana says. “What are the benefits of having life insurance? What is the value of a wellness program? These are all key components to a comprehensive benefits package.”
Smart Business spoke with Insana about how to effectively communicate about benefits packages and why it’s such a critical part of your job.
What are employees most concerned about when it comes to benefits?
The focus has to be on out-of-pocket cost for employees. In today’s environment, employees are very concerned about their financial exposure. If you have an employee making $40,000 to $50,000 a year and they don’t have disability income replacement, that’s a problem.
While some employers don’t want to pay for disability coverage, employees will purchase it on their own. Your benefits consultant can help you find voluntary benefit solutions that match the needs of your employees.
By offering additional benefits beyond medical care, you demonstrate that you care about your employees and are looking out for their best interests and those of their families.
How important is benchmarking in the evaluation of your benefits package?
Benchmark data can provide valuable insight for evaluating your benefit package, helping you conform to or even set industry standards. Analyzing how other companies are structuring their plans, and the strategies they are using to cut costs, may make your benefit plan decisions easier.
Employers are responsible for implementing new rules and absorbing the costs, which will likely mean cutting or shifting costs elsewhere.
These decisions can make the difference between maintaining a competitive benefits package and seeing a decline in recruiting and retention of quality employees.
By benchmarking data, you have the resources to anticipate the shifting benefits landscape and evolve before your competition responds.
What if you find that your benefits package is not competitive?
The common theme with all employers and their leaders is always the same. We want to offer our employees the best benefits package possible at the cheapest price. That’s not easy to do. If you’re looking to pay for something that is cheap, that is what you’re going to get.
It comes down to your commitment to keep your package competitive and to make employees aware of what you are offering. When you talk to your people, you need to make sure you can not only deliver it in a professional manner, but do it with a strong foundational knowledge of your employees and their needs. A report that looks nice and has a bunch of fancy graphs and numbers on it isn’t worth the paper it’s printed on if you don’t understand what your employees are truly experiencing personally, financially and beyond.
You need realistic expectations. You’re not going to make everybody happy. It takes a special person to not only deliver difficult news, but also get people to understand the details behind it. Express the importance of having dialogue with your employees and continue to provide support after changes are implemented.
It’s about creating an ongoing dialogue where everyone understands what you are trying to achieve. ●
Insights Employee Benefits/Risk Management is brought to you by Britton Gallagher
