Become a ‘bell cow’ for your employee benefits: 6 ways to increase awareness

Does this describe you/? You own or manage a business. You spend good money providing benefits for your employees. Most people don’t understand their benefits and utilize only a small portion of the entire menu. You think “Why do I bother?”  How can you get your employees to embrace their benefits?

Benefits might often be seen as a requirement that costs the company money. There are many different types of benefits, depending on the employer. Benefits are a recruiting and retention tool. They are also a form of reward, because they represent non-cash compensation given to employees. When employees get cash bonuses, animosity can develop as people wonder, “Who got less and who got more”? The word always gets out somehow. One of the greatest “benefits” of employee benefits is the democratic nature of the offerings. Generally speaking, everyone gets access to the same opportunities.

This can go right over people’s heads! Why? Because they assume managers get perks not available to rank and file employees. George Orwell wrote the book Animal Farm. One of the book’s famous lines was “All animals are equal, but some animals are more equal than others.”

As a manager, are you covered by the same benefit programs as the rest of your employees? When you think of health plans, vacation time, 401(k) plans and stock purchase plans, the answer is probably yes. This can be utilized to increase employee awareness of the benefits available to them.

Farmers know “bell cows” lead the herd. You need to be the bell cow, setting an example for others to follow. Here are a few examples you might utilize at staff meetings, quarterly company gatherings, carpooling or conversations over coffee.

1. Choosing the right health plan coverage.

Your company has an open enrollment period when all employees can choose from one of several plans on offer within the company. Costs are split between the employee and the firm. Different plans cost different amounts because of deductibles and other factors.

Approach:  You have this deadline marked on your calendar. You find choosing the right one confusing, so you called the HR department helpline and asked the representative to explain the plans. Maybe you visited the FAQ section on the benefits website.

2. Participating in the 401(k) plan.

Your firm matches contributions dollar for dollar up to a certain percentage of base compensation. This percentage applies to all employees. The firm’s contribution vests over time, but the employee can direct how the money is allocated among investments on offer.

Approach:  While growing up, you were always told, ”Don’t leave money on the table.”  The reason you put money away is because you will eventually stop working and you need to provide for your own retirement. If the firm will match your contribution, why would you turn that down?

3. Cash in emergencies.

You have gotten feedback many employees aren’t taking advantage of the 401(k) plan because they worry they might need the cash in case of a medical emergency. Your company plan has a feature allowing employees to borrow against their plan assets in case of emergency.

Approach:  This is an opportunity to use the “Feel, felt, found” sales strategy. You could say you have heard emergency access is a concern. You feel the same way. The pandemic taught us to “expect the unexpected.”  You (truthfully) explain you know another person at the firm that felt the same way. But when they found (out) the retirement plan has a feature allowing for borrowing in case of emergency, they felt they would have access to money if they needed it.

4. Investment option in the retirement plan.

According to Vanguard and CBS News, almost 75% of money in 401(k) plans is invested in the stock market. This means there are still some people who are afraid of the stock market and keep their retirement savings in cash.

Approach: You can explain you contribute the maximum to your 401(k) and take advantage of the company’s match. Everyone should do that too, assuming they can afford it. You chose an asset allocation that includes investing in the stock market because “you won’t need that money for a long time.”  The stock market’s historical returns have been good, but that’s when measured over long time periods. You need to think long term.

5. Vacation plans.

It is possible your firm offers another little-known benefit: Your corporate travel department or designated travel agency has a corporate rate agreement with major hotel chains. Although it’s in place for business travel, employees are allowed to access these discounted rates for vacation travel.

Approach:  You need to have helped another employee to tell this story truthfully. They were planning on traveling to Hawaii. The hotel they had in mind was a major chain hotel. You suggested they shop around for pricing, but also call the travel department, explain their situation and ask what they can do. If they got a better price, the story has a happy ending.

6. Health plan in action.

Unfortunately, everyone uses the health plan sometimes. Often there are deductibles. The coverage applies to employees and family members. Tell your personal story.

Approach:  You needed an operation. You went into the hospital. Most expenses, but not all, were covered. You might have five days of overnight room charges a year you must cover at $250/night, then the plan picks them up. You stayed overnight. You got a bill by mail two weeks later. You called up and paid by credit card.

Related: 5 ways to ramp up benefits communication beyond open enrollment

There’s an expression, “Walk the walk and talk the talk.” This means you believe in what you are saying and act accordingly. You are showing the benefits plan that covers employees is the same one you use too. Everyone is treated equally. If you think it is wise to take advantage of the benefits on offer, they should too. In getting people to adopt a behavior, this is also referred to as the Best Practices or Bell Cow strategy.

Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, “Captivating the Wealthy Investor” is available on Amazon.