Tell Employees About Their Benefits Early & Often

CUNA's Escan
January 25, 2012 | COMMENTS

Thousands of employers spend countless hours each fall developing benefits communications to their employees before open enrollment. Despite their best efforts, however, it appears many employees still don’t understand their benefits, reports Workforce.com.

But nearly 80% of employees say their benefits are one of the reasons they work where they do, according to the 2011 Mercer Workplace Survey released in October.

“Health benefits are critical for employees as part their overall work experience,” says Suzanne Nolan, partner and director of marketing and communications for the consulting firm Mercer. “Our survey shows 91% of respondents say that getting health benefits through work is just as important as getting a salary.”

Among the findings from recent benefits surveys conducted by eHealthInsurance, Harvard Business Review, and Aflac:

• Fewer than 35% of those with employer-based health coverage know their medical plan’s annual deductible.

• 25% said they spend less than 30 minutes reviewing their benefits options.

• 42% of employees strongly agree that a well-communicated benefits program would make them less likely to leave their jobs.

“Most employees don't look at their benefits materials until they have an issue, and employers need to overcome that inertia,” says Helen Darling, president and CEO of the not-for-profit National Business Group on Health. “Employers need to make dramatic statements to get attention, and requiring an active enrollment can help.”

Making the communications simple and consistent is essential, according to HR experts.

“Information always needs to be sent home to the spouse, and with online communications, never underestimate a person’s impatience with technology—you need to have as few clicks as possible or you’ll lose them,” Darling says.

“Clients are using email and text messaging to send out short, targeted messages, and even providing QR codes that allow employees to view enrollment guides or other information on their smartphones,” Nolan says.

“Whether communications are specific to benefits or company strategy, employers make the mistake of communicating once around the time of the triggering event,” says Patrick Carragher, director of benefits for CheckPoint HR—a provider of Web-based HR management systems for small to midsize companies. “You want to communicate the same message to employees often, survey them after open enrollment, and then circle back to increase education on the areas they still don’t understand.”

Carragher recommends using employee meetings, combined with regular emails and other technology-driven communications, to repeat the message to employees.

“Most employees skim their materials, fill out forms, and are done with enrollment in about 15 minutes,” says Randy Hart, senior vice president at CBIZ Benefits & Insurance Services. “They can easily spend $2,000 or more on a benefits package, and a decision of that magnitude should require more than 15 minutes.”

Hart recommends planning communications six months ahead of enrollment, or right after open enrollment ends—a great time to assess what worked and what didn’t.

“If you really want your employees to understand their benefits, they need to be touched at least once a month,” Hart advises.

Avoid lengthy enrollment guides employees won’t read.

“Be brief and to the point, highlight key messages, and recognize that your employees find this information confusing,” Hart says. “Point them toward more information, if they want it, via an online portal, a printed summary plan description, or through a call center.”