Wellness Programs Call for Better Benefits Communications
Wellness programs are all the rage this year. But what’s the point of a program that employees don’t understand and, therefore, don’t use? Midwest Business Group on Health has done some research evaluating employee engagement in health benefits and wellness programs.
As the recession forces companies to cut back on spending and get more out of their investments, here’s yet another study from UNUM offering evidence that investing in better benefits communications is sound advice.
Taken in December 2010 following last year’s annual enrollment period, the UNUM study finds that effective benefits education enables employees to make better choices, can increase employee loyalty and improves how employees rate their benefits packages.
Connecting retirement benefits to the health benefit open enrollment period can dramatically increase 401(k) participation, found Bank of America Merrill Lynch. By providing easy “one-click” access to enroll in or make
Drive 401(k) participation by tying to Open Enrollment
contribution changes to 401(k) plans during open enrollment, employers have seen an increase in participation. The study showed an 11% year-over-year increase in the number of employees making a change to their retirement plan election as a result of the association with the health care open enrollment period. And nearly all of these election changes were positive (93%), meaning employees started or increased contributions to a plan.
The on-boarding process is critical to the productivity and retention of new employees. And while on-boarding is defined as the first 90 days of employment, most experts agree that a new hire’s assessment of a new employer
Meaningful New Hire Connections
is formed much, much sooner. In fact, like so many other things in life, your greatest opportunity to build trust and excitement about your organization is likely with the very first impression you make.
Employees seek retirement advice from their employers
A majority of people have agreed they would like more guidance from their employer about how to achieve retirement goals according to the 11th Annual Transamerica Retirement Survey.
Perhaps not surprisingly, employees with a higher overall education level are more likely to be financially well in retirement. Only 63% of employees with only a high school diploma participated in a retirement plan, as opposed to 84% of those with a college degree.
Once upon a time, the number one priority for benefits programs was to attract, motivate and retain talented employees. That time was 2007. As the economy melted down and layoffs began, retention quickly took a backseat to benefits cost cutting priorities.
Benefits Communications Turn Risk Into Opportunity
As the economy improves, the tide may be turning once again according to several new studies. Here are some key findings:
Despite the optimism regarding the economy in 2011, employees are still feeling cautious about their money,
Employees Remain Cautious
according to the Q4:2010 Principal Financial Well-Being Index survey. Here are some of the key takeaways:
Voluntary benefits are ineffective without proper education.
Conceptually, offering voluntary benefits has a lot of attractive qualities for employers. In fact, 65% of employees said their voluntary benefits made them feel more loyal at work. But is simply offering them enough?
Voluntary benefits are ineffective without proper education, according to MetLife’s 2010 research and survey. These are valuable options for employees and employers alike, yet they are shrouded with misconception.
Consider the following statistics found in the recent studies:
Better education leads to higher FSA enrollment, which saves employers money on taxes.
Good benefits communication can raise employee Flexible Spending Account enrollment by 20% or more, a recent study found. The benefits of an FSA may be obvious to the seasoned HR Director, but not all employees – or employers – know how valuable these accounts can be.
Both employee and employer enjoy significant tax savings when FSAs are used. Employees save on federal and FICA taxes, plus any additional state and local taxes on medical items paid for through their FSA.
Over half (53%) of large U.S. employers are making changes to their 2011 health plans in order to accommodate the new Patient Protection and Affordable Care Act, according to a survey by the National Business Group on Health.
Providers face rising health care costs but still must supply the legally required amount of care. To do so, 63% of employers who are changing plan details have decided to raise the percentage that employees contribute to the premium, while 46% aim to raise out-of-pocket maximums. Another 61% will be offering consumer-directed health plans, or CDHPs, which are a proven method of increasing consumer flexibility while cutting costs.
