Employee benefits can be complex, but if employees don’t fully understand their benefits packages, you may risk them not taking full advantage of what you’re offering.
Take a look at how you can better communicate your employee benefits so that all parties involved can be successful.
A Clear Communication Strategy Benefits You
Did you know that, according to a recent report by Watson Wyatt Worldwide, more than 80% of employees respond positively to a benefits plan that’s been effectively communicated as opposed to less than 26% when it has not been effectively communicated?
An effective communication plan that simplifies benefit information enhances the way your employee perceives their benefits plan and in turn, you.
Here are some additional benefits:
Employees Feel Valued
Employees (especially those who are just entering the workforce) may not always understand the language that’s used in benefits explanations. For instance, with health insurance terminology, only 7% of individuals can define terms such as premium, deductible and coinsurance according to UnitedHealthCare.
If benefits information is too complex, employees may skim over it or ignore it completely. Employees are more likely to pay attention and understand when you make the information relatable and personable. If the information is understood and emphasized, an employee will feel more valued within the company and appreciate the benefits you offer.
Employees are more dedicated when they are valued, but they are also more productive when they are healthy and happy. If your employees understand their benefits package, they are more likely to take a proactive role in participating in the benefits to the fullest extent. And when they have access to health insurance or other perks that make their lives more satisfactory, they will likely be able to manage their health better — reducing unnecessary absenteeism due to illness.
Easier to Acquire and Retain Talented Employees
When you’re hiring new employees, clearly explaining benefits can give you a competitive edge in obtaining and retaining the top employees.
If you have a communication strategy to simplify benefits information, candidates will understand the value of your benefits package which can be even more attractive than a higher salary.
More Efficient Use of Your Resources
The value you present to employees with benefits, especially health insurance plans, can be monetarily equal to a raise in salary for them. This can, in turn, cost you less due to group rates and lower payroll taxes. Employers can avoid the hidden cost of paying extra payroll taxes on higher salaries by instead offering benefits that provide similar value to employees.
How Cornerstone Helps Simplify Employee Benefits
When it comes to communicating employee benefits, the biggest hurdles for employers may include:
- Reaching a diverse audience of employees
- Budget and time commitment required
- Complexity of information
Cornerstone Insurance Group offers employee benefits administration that analyzes and uses data to create a custom benefits package for your employees as well as concrete methods for simplifying benefits information — methods that make sense for your particular organization, employees and goals.
Our goal is to not only create a comprehensive employee benefits package and communication strategy but also use the latest tools and technology to improve on the benefits experience by implementing an enrollment solution that helps employees make better decisions about their benefits.
At Cornerstone, we use applications like Alex by Jellyvision and Nayya to simplify the benefits experience for your employees. These applications combine everything into one place for the employees which can drive value perception of the plan and encourage employees to be better stewards of their healthcare costs.
We offer the opportunity to hold on-site company meetings to explain benefits, walk through and optimize wellness plans, talk about financial wellness and more to make sure your employees can make fully informed decisions about their benefit options. It’s important to both the employee and employer to provide easy-to-understand information.
If you’re struggling to understand how to simplify benefit information for your employees or you are looking for a solution for providing employee benefits, reach out to Cornerstone Insurance Group because we’re here to help.
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