Understanding the Value of Benefits

As a benefits professional for almost three decades, I often wonder why employees only want to learn about their benefits when they need to use them. In many cases, they haven’t signed up for benefits and it’s too late. They are told they must wait until the next annual open enrollment or experience a qualifying life event. After thirty years, I get it- not everyone is as passionate as I am about employee benefits!

I believe the value of benefits and the need to understand benefit programs is underrated by most people. Employees have told me that benefit materials aren’t exciting to read (really!) and can be quite complicated because of language such as pre-tax versus post-tax, eligibility, premiums, out-of-pocket maximums and deductibles. Not to mention understanding the differences between a health savings account (HSA), a health reimbursement plan (HRA), and a flexible savings account (FSA) is complex, so employees just don’t enroll in them.

Many companies are now offering more than just core benefits such as medical, dental and vision. Their voluntary benefits often include supplemental life insurance, group accident, critical illness, identity theft protection and pet insurance.

With these enhanced offerings, are companies making it even more complicated for employees to understand their benefit offerings? Perhaps, but I do not think there is a ‘one-size fits all’ benefits package, so employers need to offer a wide array of benefits and explain the differences between the benefits.

I am a firm believer in creating different channels of communication to aid employees in understanding their benefit offerings. Easy-to-read and understand benefit guides are essential. Links to short videos and flyers posted throughout the office are also helpful. Many medium to large-sized companies have a designated benefit call center that can also be a resource to employees and assist with enrollment. All these tools, along with a top-notch benefits team, a proof that a company is willing to invest in their employees, their overall health, job satisfaction, and even their future.

In addition to salaries and compensation, benefits are usually the next most costly expense for a company, so it’s important to offer the ‘right’ benefits. Companies must consider what benefits are ones that employees will use and appreciate. Companies should consider the needs of the employees and make sure benefits are affordable to the employees. Lastly, companies must also offer benefits that are legally required in the states they operate in as well.

In today’s competitive job market, employee benefits are a great tool for attracting and retaining employees. Benefits can improve a company’s bottom line by engaging employees and improving their productivity, well-being, and work-life balance, so a company needs to reevaluate its benefits offerings every few years. If employees aren’t utilizing the benefits, find out why. If it is because employees don’t understand the benefits or cannot appreciate the value of the offerings, then it’s the responsibility of the benefits team to change that! Be creative with your communications. Think outside the box to ensure this important and expensive part of the business is being appreciated and utilized. It’ll be worth it for both parties.