Open enrollment is coming — help employees see the total value of their benefits
Employees no longer see better company benefits as the main reason for changing jobs, according to a recent webinar by cloud-based digital business Alight. The assumption now is that many companies offer the basics, such as health and dental insurance and 401(k) plans. But talking about benefits — especially total rewards — can impact retention numbers.
According to Alight’s findings, 59 percent of the employees surveyed who plan to stay with their employers say they have a grasp on total rewards (i.e., everything the company has to offer). Whereas those who see the grass as greener elsewhere (the 49 percent who plan to leave) report having a good understanding. That gap could be tightened, and employee retention improved, with better benefits communication.
This means that even though a company might not have much control over benefit costs, they can control the answers to these two key questions:
- How are total benefit offerings communicated to employees?
- How often do employees hear this message?
With open enrollment just around the corner for many employers, now’s the perfect time to ramp up those communication efforts.
Why is timing so important?
First, employers need to communicate year-round about company benefits. Employees need to hear about it in small chunks throughout the year. Don’t just dump a bunch of benefit information on the table like a huge pile of laundry to be folded. It’ll be too overwhelming for employees to sort through all the laundry (er, benefits) to find out what is meaningful in them.
Which brings up a second point — each benefit will have a different value of importance for each employee, and this can ebb and flow throughout the year and throughout an employee’s lifecycle on the job. That’s why continuous, ongoing communication is needed.
5 steps employers can take right now
The stakes are high, as attracting and retaining employees continues to be a challenge for most employers across the country in many segments. Here are five things to start doing today to improve company benefit communication:
- Communicate. Form a plan to get into a regular routine of communicating about benefits throughout the year. If you skip this step, you’re missing a huge opportunity to show employees that you care about them and their overall well-being.
- Listen. Find out what employees know about their benefits. This can be a simple email, a formal survey, chitchat around the workplace, or a quick virtual call to a sampling of employees. Use that information to craft your benefits communication (see step #1).
- Be brave. If you don’t do steps #1 and #2, there’s an increased risk that you’ll be dealing with frustrated employees who made mistakes signing up for plans and programs that didn’t suit their needs. Which, in turn, will take you more time to handle. Yes, it can be scary to be proactive about talking total rewards and you’ll probably get flack on something. But at least you’ll be in the driver’s seat on that communication.
- Be honest. As much as you can, be transparent with employees about what benefits cost and why certain decisions get made. If you don’t tell employees the “why” behind the decision to cut a program or change a benefit provider, they will make their own assumptions and possibly feel their needs aren’t taken seriously.
- Teach. The Alight findings showed that 52 percent of employees don’t understand what benefits they even have. Half say their company’s benefit communication isn’t effective. Teach your employees (without using jargon) about what is included in their total rewards, how they can access their benefits, and who they can reach out to with questions.
Key to remember: With open enrollment coming up, now’s the time to ramp up benefits communication.