Employers spend significant time and money designing benefits plans that they believe meet their employees' needs and serve to attract and retain key talent. Yet, realizing satisfactory levels of employee participation in these benefits can be a challenge.
According to MetLife's 11th Annual Employee Benefits Trends Study, only 42% of employers are very satisfied with the level of employee participation when it comes to voluntary benefits. Which is not surprising, considering that MetLife research also indicates that about a third of employees may tune out during this important annual event.
"Many employees are on 'autopilot' when it comes to enrolling in the employee benefits provided to them through work and either simply roll-over the previous year's selections or they miss signing up altogether," said Michael Fradkin, senior vice president, Voluntary & Worksite Benefits, MetLife. "This often leads to missing out on important new coverage options and potentially leaving money on the table."
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To help employers achieve a successful benefits enrollment season, MetLife analyzed the enrollment preferences of engaged employees and identified six simple strategies that can help increase employee participation and deliver a higher return on a company's benefits investment.
- Upgrade the Enrollment Experience: A good customer experience is key to employee engagement and employers that recognize this and upgrade their enrollment experience to meet the expectations of today's employees will likely see increased participation. With employees having to make more choices and paying a greater share of their benefits coverages, they need the kind of enrollment tools that will help them understand their benefits and what these benefits can do for them. In fact, half of engaged employees say they appreciate online decision-support tools. Such tools can help prioritize their needs and understand how benefits decisions affect their paycheck.
- Use a Simple and Straightforward Enrollment Process: In today's 24/7 world, where work and personal activities are increasingly converging, employees are short on time and have little patience for unnecessary complexity or confusion. Companies that focus on making the process simple, accessible and easy-to-use can see a payoff in the form of increased engagement.
- Aim for Online Enrollment: Forty-two percent of employees say they prefer online enrollment, yet only 35% had the opportunity to do so at their company. Online enrollment is more likely to be characterized as simple and straightforward compared to paper or phone enrollment. And, nearly half of employees who are engaged in benefits enrollment say that their employer's benefit enrollment process offers a customer experience comparable to the best online shopping experience.
- Communicate Clearly: Successful enrollment starts with communications that are clear and effective. That means avoiding insurance jargon and using an informal tone. It's also important to be upfront and explicit about changes and enhancements to the benefits program. Additionally, communications are compelling when they demonstrate that the company knows its employees. More than half (54%) of engaged employees say it's very helpful when benefits materials provide personalized information reflecting their needs and life stage.
- Communicate Frequently: While annual enrollment may be the primary timeframe for benefits communication, keeping employees engaged in their benefits means talking about them year-round. The Study reveals that 43% of engaged employees say that ongoing education about how to use their benefits would be very helpful. It works well when annual enrollment is the time when companies communicate about the "here and now" decisions, and communications outside this period become an opportunity to preview or educate employees on future benefits developments.
- Foster Feedback: Proactively seeking – and incorporating – employee feedback regarding the enrollment process can foster greater employee engagement. Four in ten engaged employees indicated that their employers obtain feedback on how to improve benefits communication and processes compared to just 17% of non-engaged employees.
"By providing best-in-class enrollment tools and technologies, employers enable employees to take a more active role in their benefits enrollment," notes Fradkin. "The payoff? Employees who actively engage in reviewing and evaluating their workplace benefits options are three times more likely to be satisfied with their jobs, and more than twice as likely to recognize and value the benefits offered through their employer."
Findings from the MetLife study with actionable steps for increasing employee engagement can be found online at BenefitTrends.MetLife.com. Additional insights from MetLife's 11th Annual Study of Employee Benefits Trends are also available on the website, including how to maximize the value of voluntary benefits and the link between health care reform and productivity pressures, along with the opportunity for visitors to sign-up to receive automatic updates as new data is posted.
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