As noted in a previous blog post, the first step toward making your employee benefits package appealing is to make sure people know about it. You want not only to ensure that an employee benefits program exists, but also that your current and future employees know the specific details of the plan, what their insurance covers, and how the insurance benefits might fit into their lifestyle and budget. The first thing that you should do is advertise the benefits you offer to employees you are recruiting, and educate existing employees and new hires about the benefits available to them.
There is an infamous statistic that 80 percent of HR managers believe their employees are well educated about their benefits, and 70 percent of employees indicate that they do not understand the details of their employee benefits program. YIKES! This disconnect is something that employers and business owners witness on a weekly basis, and unfortunately, real life sometimes paints the best picture.
In a one-week period, I was visiting with a few employees of a small school district, explaining some of the benefits that the company I work for could bring to their employee benefits package. Each of these employees thought that the accident insurance was a must-have for their families, the hospitalization program would be a good fit in a high-deductible environment, and that short-term disability insurance would be a lifesaver if they got sick or hurt and could not work. Then I met with the district’s CFO and HR administrator. They explained that they enroll employees in an online environment, and do not wish to periodically conduct one-on-one enrollments, which are specifically designed to increase employee education on the benefits offered. Not only did it turn out that the type of insurance I was discussing with the employees was available, but the HR administrator also noted her confusion over the fact that there was low participation in the outlined benefits. The disconnect was clear — the employees had little to no understanding of what benefits the district was providing, and the people responsible for educating them had set course toward a low education, online enrollment to reduce the amount of their time that the process took.
Most employees are not insurance aficionados. They need some guidance when it comes to understanding employee benefits packages and determining which insurance products best fit their lifestyle and budget. If your HR director does not fully embrace this idea, then you may want to visit with them to help re-package your employee benefits plan so that it offers your employees the education they need in a constructive way. Your insurance professionals will or should do most of the work, you just need to embrace the idea of letting them.
Navigating the different employee benefits programs can be difficult, and even as an administrator, you may have a hard time figuring out which package best suits the needs of your employees. Luckily, at Retention Solutions Pro, our team of experts has the experience to provide you with all of the information you need. If you are ready to adopt an employee benefits program that meets the needs and budget of both your business and your employees, then contact Retention Solutions Pro to get started today!