How to hype the value of benefits plans

Even if benefits aren’t as robust as they were during the pandemic’s peak, it’s likely that most organizations will still be offering unique benefits beyond health care coverage.

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A recent survey from Kaiser Family Foundation suggests that the cost of health insurance premiums will increase sharply in the coming year. In light of this, employers may be forced to make some tough choices regarding benefits. Some organizations will make cuts to coverage or wellness initiatives, while others may need to pass cost increases to employees.

Without the right communication and implementation strategy, these kinds of changes can shock and frustrate employees, and with that comes the risk of losing talent. Before that happens, leaders should make sure what they’re offering fits their people’s needs and that employees understand the value of their benefits and what is available to them. In doing so, organizations can ensure their people are equipped to get the most out of those benefits, which will drive better outcomes – for employees and the business. 

Ensure benefits are easy to understand

Figures vary depending on the survey, but several studies have shown that approximately one-third of employees don’t understand the benefits available to them. This is a problem for organizations and employees because people need to understand their benefits to use them to their full potential.

The solution? More regular communication between employers and employees. This is particularly important for organizations that will be making changes to their benefits in the coming year. That’s because, even if benefits aren’t as robust as they were during the pandemic’s peak, it’s likely that most organizations will still be offering unique benefits beyond health care coverage. Employers need to make sure their people recognize this.

Communicating about benefits can be daunting because insurance is notoriously complicated. But that doesn’t mean organizations shouldn’t try to improve. Instead, HR and benefits leaders should work with their benefits providers to craft simple, easy-to-digest information to help employees learn how to take full advantage of what’s available to them. When people understand their benefits, they’re more likely to use them. That’s important because using benefits preserves people’s health and prevents more expensive and invasive interventions.

Use data to guide the narrative about benefits

When organizations are implementing changes to their benefits offerings, they need to begin by listening to what people want and need from their benefits. One way to do this is to collect data from employees through surveys. This data can go a long way toward helping organizations shape a benefits package around the needs of their people. 

Collecting data from employees can also help organizations justify their benefits decisions. For this reason, leaders should share the data they’ve collected and show employees how it aligns with the benefits decisions they’ve made. If leaders can show what the survey results identified as priorities and then demonstrate how the organization has responded to meet those needs, employees will be far more likely to have a positive reaction.

Pursue creative solutions such as flexible benefits

As we explained in the previous section, it’s important for organizations to survey employees to identify trends in their benefits preferences and needs. But what happens when no trends emerge from the data? Luckily, when organizations collect data and find a wide range of needs, there are options. 

Flexible benefits are one way organizations can provide for the individual needs of employees. This customization can be essential for organizations with a distributed workforce. Employees’ needs are more likely to vary when people are scattered across the country or worldwide. With flexible benefits, leaders don’t have to worry about whether their people will get the care they need at a price they can afford. 

Put substance behind the hype with voluntary benefits

Employers can offer a host of voluntary benefits to employees. These types of benefits offer employees increased flexibility, often at little or no cost to the organization. They can also offer added incentives to employees and potential employees. 

Not all voluntary benefits are related to physical and emotional wellness. The role of benefits is expanding to include financial wellbeing and the wellbeing of loved ones not traditionally covered by insurance. Some voluntary benefits include:

Help your people maximize the value of their benefits for business success

With so much economic uncertainty, some organizations can’t help but make cuts to their benefits in the coming year. But that doesn’t need to stop leaders from using benefits as a tool that keeps costs in line while ensuring the wellbeing of their employees. 

Read more: How to ensure benefits packages stack up

With clear, transparent communication and education around benefits, organizations can help their people achieve wellness by fully utilizing their resources. What’s more, by augmenting their benefits offerings with creative solutions such as flexible and voluntary benefits, organizations can position themselves as an employer of choice, driving important business metrics such as retention. 

Jennifer Jones, MSM RD, is population health practice Leader at Springbuk and an experienced health care professional with a background in clinical dietetics, wellness programming, and employer health.

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