Gathering feedback

The second quarter is a great time to gather feedback about what’s working well and what could be beneficial in the future, as employees have now acclimated to their benefits package. It also provides an opportunity to ensure the benefits offered meet the real-world needs of employees. Recent data shows that employees place value on a wide range of benefits. In fact, the Principal Financial Well-Being IndexSM found that making more benefits available to employees is correlated with higher retention rates. Taking the time to listen and learn can shine a light on what matters most to employees.

When asked what benefits employees find “extremely valuable,” the index found there is value in a variety of benefit options in addition to the “big three” benefits of health insurance (84%), retirement (81%) and paid time off (79%). Employees also identified life insurance (64%), paid family and medical leave (63%), and insurance for disability, critical illness, or accidents (52%) as extremely valuable.

To better understand what benefits your employees find valuable, listen to their needs. Small businesses have a unique advantage going into these conversations, as they’re more likely to know the personal concerns of their team. For larger companies, this is a great time of year to field a survey and learn more about employees' needs and preferences.

Preparation

The feedback employers and advisors receive from employees can then fuel third quarter conversations and decisions about benefit plan design. The personal feedback you heard will allow you to more thoughtfully consider the many aspects of plan design, such as adjusting the specifics of an existing program to account for employee needs and company budget, adding a benefit on a voluntary basis, or even expanding the benefits budget to account for additional employee needs. As you listen to employees, remember they may not be asking employers to pay for another benefit – they are asking for access to a benefit that can make a difference in their life. Keeping an open mind and leveraging the expertise of trusted benefits advisor is valuable as employers go into these annual conversations.

Enrollment season    

Employees rely on effective and clear communication from their employer and benefits advisors to help make the best financial decisions for themselves and their families.

When it comes to enrollment season, the focus should be on effectively communicating the options available, while highlighting any changes that have been made. Different generations and employee groups may have varying benefit priorities and communication preferences. Using a variety of communication channels — emails, newsletters, meetings specifically about benefits, internal websites, and even mobile apps — ensures you are reaching employees through their preferred medium and they have information easily accessible if they have questions.

The good news? The communication approach you have now implemented throughout the year should make enrollment season feel like less of a sprint, but rather, a finish to a successful, ongoing cycle of communication. This cycle allows employers and advisors to advance employees’ knowledge of the benefit offerings available to them and how to use the benefits for their well-being. And the benefit of these benefits for the employer is even better employee retention.

Kara Hoogensen is SVP for Benefits & Protection at Principal Financial Group.