Human resource (HR) benefits account for 30 percent of compensation spending in most organizations; companies seek to ensure their return in investment (ROI) is as high as possible. At the same time, employers want employees to understand and appreciate the value of their benefits package. If employees are not aware of the full range of their benefits, or don’t understand how to utilize their benefits, a lot of money is being left on the table in unused benefits.
Employers spend a significant amount of money to provide their employees with an attractive compensation and benefits package. But for some workers, understanding their benefits can be challenging, creating a situation where they do not access or fully use their benefits. And, at the end of the day, money left on the table when it comes to benefits is a lost opportunity for your employees and your company because a comprehensive benefits package increases employee satisfaction and reduces turnover. Understanding their benefits can help some employees better understand their coverage and get more from their benefits package.
Here are the top 3 ways your company HR department can help employees understand and access their benefits.
- Brand your company HR department
Branding your company HR department is important so that employees recognize letters from your department as vital and therefore will open regular mail, emails, app notifications, etc. sent to them at a higher rate. Whether you represent a large or small company, brand every bit of communication that is sent to your employees. Every time your employees see that brand, they will hopefully pay attention.
- Analyze the data
Take the time to data mine to discover the benefits that your employees tend to not use. Create a graphic that demonstrates the benefits and the corresponding dollar amounts that have been unused according to frequency (i.e. Top 10 Most Frequently Unused Benefits by Dollar Amount or some other type of chart) that helps employees clearly see the company investment they did not take advantage of in the last year. This can be a very effective way of communicating the value of lost benefits.
- Simplify your communication messaging
Typically, most companies communicate with employees about their benefits a couple of times a year. Especially if the communication is in the form of a super thick package of paper that includes a great deal of medical jargon that may be in the form of acronyms and terms that are difficult to understand, employee’s eyes will glaze over and the packet will be filed somewhere for later consumption, which may never happen. Increase the chances that your communication will be read by piecing your messaging out in communications that are easy to read and understand. Track your communication open rates and program enrollment rates to determine effectiveness and adjust your communications accordingly.
If your employees don’t understand or appreciate their benefits, your company is not capitalizing on the investment they’ve made as the important motivational tool it can be. It pays to take the time to implement ways to improve the perception your employees have of their total compensation. Improving their understanding is relatively inexpensive and well worth the effort.
To learn more about benefits communication, contact Chelten Consulting.