Benefits planning is one of those things that we often only see from one angle. When we look from another, we see more of the picture or even a different part of it that we couldn't see before. The view we're missing usually reveals a more effective and strategic benefits plan–one that saves sponsors money in the long-run, increases participation and improves employee culture.
Let's imagine two of your clients, Company A and Company B. Company B has incorporated benefits planning and they are better off than Company A. Here's what I mean:
| | Company A | Company B |
| Benefits Planning Program includes: | - Auto-enrollment and auto-escalation for easy participation in retirement plan.
- Intranet full of resources and tools to calculate retirement goals.
- Internal communication on benefits to employees at open enrollment periods, and once or twice throughout the year.
| - Auto-enrollment and auto-escalation for easy participation in retirement plan.
- Intranet full of resources and tools to calculate retirement goals.
- Unbiased ongoing employee education on benefits for about $10 to $20 per employee.
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| Today: | - Employees are generally unclear on their benefits with only periodic communication.
- Low utilization of benefits employees don't understand how to apply to their lives.
- Low workplace morale and productivity.
- Employees opting out of auto-enrollment and auto-escalation.
- Regular requests to HR for hardship withdrawals and loans from retirement plan
| - Employees are generally clear on their benefits with regular communication.
- Increase in retirement plan participation by 4 percent even in a tough economy.
- Satisfactory workplace productivity and morale.
- Hardship withdrawals and loans from retirement plan virtually non-existent.
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| 5 years from now | - High turnover and employees have misconceptions that other companies offer better benefits packages.
- Recruiting issues because company can't compete with the benefits planning programs that other companies are now providing.
- Facing potential lawsuits from disgruntled employees who felt the company did not do due diligence in plan design.
- Employees unable to retire because they haven't understood how to save or manage their benefits. Younger employees can't move up the ladder.
- Company is paying a lot of out of pocket money for employee health care.
| - Little turnover, even when other companies offer better benefits, employees are generally appreciative and loyal because company has proven to be committed to helping employees.
- High job satisfaction and an overall healthier employee culture.
- Culture that attracts disgruntled employees from companies like Company A.
- Competitive advantage of obtaining more seasoned employees.
- Employees are able to retire on time, leaving more room for career growth of younger employees.
- Low risk for lawsuits.
- Spending less on health care costs because employees are experiencing less stress.
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Wouldn't your clients prefer to be Company B? Stay tuned next month for how you can help them create a Benefits Planning Program that makes sure they are.
