For most employers their employee benefits program is the second largest expense behind employee compensation. We work with top firms day in and day out and yet we still hear from their employees, “We don’t really know what benefits we have.” This lack of clear communication about benefits ultimately leads the employee to either place a low value or none at all on pricey benefits. Here are some easily implemented tips for improving your communication strategy and increase your benefits ROI:
1. Schedule advance communications. Prior to open enrollment, send out information to your employees about the upcoming date. Offer to hold “pre-enrollment meetings” to explain and discuss the plans and options. Make enough time for these meetings to accommodate the size of your team.
2. Offer multiple forms of communication. Send out information in the payroll one week and follow it up with a correspondence via email the next week. Studies show that if a benefits plan is explained 3 or more times over a period of 3 or more weeks the employees confidence and value of the plan increases 40-50%! That is a huge difference and can certainly add to your ROI (Unum Benefits Study 2010).
3. Survey your employees. A simple survey to your employees can shed light on the things that matter most and provide you as the employer with a game plan in formulating your plan design. Don’t let the survey be a one time thing. Consider scheduling a survey on an annual basis to hear feedback from the benefits recipients. You might be surprised about their perception of value.
At Beimdiek, we are always helping companies look at the big picture not just for cost savings, but for delivering real value. If you would like more advice on how improving the ROI on your benefits plan, contact us for a consultation.