Employee benefits are an essential tool
in attracting and maintaining a motivated and loyal work force. If the employees aren’t fully aware of all the benefits available to them, much of the time
and effort employers spend to select those
benefits is negated.
“People can’t put a value on what they
don’t know about,” says Naomi Hall,
regional director of training for Gallagher
Benefit Services Inc., Houston. “Effective
communications include getting the right
information out at the right time for the
right audience. The more employees know
about the benefits that the company is paying for, the better chance there is that they
will appreciate what they have.”
Smart Business talked with Hall for her
insight into effective employee benefits
communication.
Why is communication of benefits so important?
First, there are the legal requirements.
Most employers are familiar with the communications mandated by COBRA, HIPAA,
and other federal and state laws, but just as
important is keeping employees regularly
informed about what the benefits mean to
them and at what cost. Too often, employers will simply hand out a ‘benefits booklet’
once a year when the new plan takes
affect. Studies show that about half of
employees just skim those booklets.
Communications-savvy companies are
finding a variety of ways to provide more
timely information targeted to the employees’ needs.
Strategic communications are so important. It takes forethought and planning, but
can pay big dividends in employee knowledge and morale.
What benefits information should be provided on a regular basis?
The majority of employees underestimate the total cost of their benefits package and overestimate their cost share.
Employers should share information about
the total cost of benefits with employees.
It’s often called ‘the hidden paycheck,’ the amount employers pay for benefits, yet
employees don’t know about it. That can
be 20 percent to 40 percent of their total
compensation. Also, reminders about how
to most effectively access and use benefits
are essential. For instance if you have a
wellness plan that pays for a free annual
checkup, remind employees about it.
Healthy employees are more productive.
You can also communicate various ways
that employees can better maintain a
healthful lifestyle.
What are some of the ways companies can
communicate this information?
It depends on the corporate culture and
what resources the company has available.
If employees regularly have access to the
Internet, e-mails or postings on the company intranet can be effective. Some companies are setting up specific Web sites just
for benefits. Employees can go to that site
24-7 to obtain benefits information and
request updates to addresses or even coverage levels. Web casts are also effective. A
year-round communications campaign is
very important. If considering print communications, postcards could be mailed.
Break-room posters are visible reminders
of the benefits package. Helpful wellness tips in the pay envelope can be effective. If
you need help in getting started, your benefits vendor should be able to supply some
ideas or even printed materials that you
could use.
Employers don’t need to spend a lot of
time or money, but the more they do communicate, the more advantages they are
going to receive from the benefits provided. Some companies use a specific font or
logo to communicate benefits information.
Any time employees see that font or logo in
company communications they know the
item is addressing benefits and they are
more likely to review it.
What do you mean when you say the right
time?
The right time certainly includes the
open-enrollment period. Be sure to get the
information out at least a month ahead of
the deadline. Some larger companies formally survey employees from time to time
to get their feedback on effective benefits
programs. If you are doing this, be sure to
get the survey information out six to eight
months before renewal so that you have
time to thoroughly review the input as you
are making decisions. These surveys can
be done online, through one-on-one visits
or focus groups. This information can help
determine what is really important to your
work force.
What do you mean by the right audience?
For example, if you have a primarily
younger staff, those people are probably
going to be more interested in child-care
programs than retirement plans. By communicating the availability of nurse hot
lines through the medical plan or possible
federal tax breaks on child-care expenses
by using a flexible spending account, you
can target this part of your work force so
that the employees better value the benefits package provided to them.
NAOMI HALL, CEBS, is regional director of training in the
Gallagher Benefit Services Inc. section of Arthur J. Gallagher &
Co. in Houston. Reach her at [email protected] or (713)
358-5898.
