I recently read some disheartening statistics on the level of dissatisfaction employees have with their employee benefit packages and the administration of open enrollment at the companies they work for. Employers spend a third or more of their payroll dollars on employee benefits annually. If those benefits and the work behind it all is not hitting the mark for employee's expectations, employers need to do something differently.
It is important to first understand the vast majority of employees consider health insurance as the most important benefit offering. The next important benefits include time off, paid and unpaid; and flexible work arrangements. Retirement plans are considered nearly half as important of a benefit and the gap between the importance of those plans and satisfaction employees have with the programs their employers offer is exponentially less significant than the relationship of dissatisfaction with healthcare programs’ importance and satisfaction.
American companies have been getting creative over the last decade in the areas of scheduling, work space design, remote employment arrangements and other areas of productivity; however, they’ve remained relatively stagnant with regard to employee benefits, both in the offerings to employees and how those programs are administered.
With Obamacare and healthcare reform consistently at the top of political news and what seems to be a never-ending loop of impeded progress and delay, I scratch my head and wonder why we are waiting for such a critical issue to be decided by government. It feels very Unamerican to me. As Americans, we are innovative and forge ahead creating solutions and adapting to overcome challenges in so many other arenas but neglect our own health and welfare. Why is that?
Answering that question is probably best left to the political and philosophical bloggers, so I’ll just stick to my ideas on creatively adapting our employee benefits programs for today’s workforce. 😊
My answer isn’t an easy fix and that’s probably why it hasn’t been successfully adopted. In my opinion, education and communication are the keys to making progress with this major dilemma and positively changing employee opinions of the value of their benefits and satisfaction with employer’s administration of them. A few other significant behind-the-scenes changes combined with effective education and communication will impact these areas, as well as have residual effects on morale, productivity, talent retention and recruiting.
Let’s talk about education and communication done right. Currently, employers spend significant amounts of their budgets on the direct costs of offering health insurance to their employees. And recently, the government has mandated this benefit, so even the least preferred employers are incurring this spend. However, few take the time to communicate and educate their employees on the value of the benefits they provide and how to get the most out of those benefits. If an employer has a “good” process in place, these benefits are reviewed during orientation at a high level and when a new hire is likely overloaded with other information about starting at the company, and annually during open enrollment. Yet, we expect our employees to evolve in a consumer-driven market without the education and information to make good decisions. No wonder employees are unhappy with employers on that topic.
Here's what I recommend a good communication and education program should look like:
Some of the additional behind-the-scenes changes are not new concepts but still highly underutilized because employers are not educated enough themselves on how to implement and administer these programs. Defined contribution plans and self-funded programs can be great options for even small employers today; however, not enough employers even know what questions to ask to begin to assess if the plans are right for them. But once they learn more, they may realize they’re less risky and intimidating than they thought.
To make progress on this issue, we’ll need employers to learn more about healthcare options and educate their employees on the benefits they provide. I know not every company has time and availability to dedicate to this issue but I’d argue they cannot afford not to devote some resources to solving it when recruiting, retention, engagement and productivity are at stake. Most benefits brokers have access to materials and information. They are often more than willing to provide education and support to employers and their employees. Health insurance carriers and providers will eagerly participate, as well. If you use a vendor for your wellness program, they can play a key role in this initiative as well. Pooling these resources can make the task less daunting and time consuming.
The companies who adopt these strategies will reap incremental rewards and lead the way for top workplaces across the country!
