Do Your Employees Value the Benefits You Offer?
When you add them all up, employee benefits can easily equate to 30% or even 40% of total compensation. Chances are, your workers do not know that, but they should.
The International Foundation of Employee Benefit Plans recently asked its members what they’re doing to educate their employees about benefits, and how well they think their efforts are paying off. Among other observations, the study found that some of the least common communication strategies are the most successful.
More than 80% of poll respondents said their biggest challenge was getting employees to open and read the communications they send. The next most commonly cited challenge: employees who do open the messages often don’t understand them.
Third on the list of challenges was that employees don’t perceive value in the benefits they have. Employees are often unaware of the full array of benefits and seldom realize just how much their employers pay to make those benefits available. Employees commonly equate the price tag of their health insurance with the amount that’s deducted from their paychecks. In reality, of course, that’s a fraction of what the employer pays, or what the individual would have to pay if there was no employer plan.
Understanding that Value Empowers Employees
With the cost and the effort you put into choosing, developing and offering benefit plans to your employees, the payoff could be much better in most cases. The survey indicates that the best approach seems to be targeting your benefit communications to the life stage of the employee — and keep up the communication throughout the year. Otherwise, your trash cans (real or online) will overflow with unread materials that many workers just can’t digest.
Contact us for assistance with any employee benefits questions.