How to Communicate and Reiterate Your Benefits Program More Effectively
In business, effective communication is a key component of a well-run organization. Effectively communicating your employee benefits program can greatly influence employee satisfaction, engagement, and retention. But how can you ensure communication and message surrounding your benefits program truly resonates and sticks with your employees? In this blog, we’ll explore strategies to improve the often overlooked ongoing communication of your benefits program to help ensure employees are not only aware of the benefits provided and offered by your organization but also to understand how to properly utilize their benefits when they need them.
The Importance of Effectively Communicating Your Benefits Program
In a competitive job market, a comprehensive benefits package is a key differentiator. Studies highlight that job seekers prioritize benefits alongside salary. According to a Harvard Business Review study, 88% of employees would opt for a job with superior health benefits over a higher salary. This underscores the necessity of not only offering your employees a robust benefits package but also effectively communicating just how “beneficial” your benefits package is.
Understanding Your Benefits Program
Know Your Benefits Inside Out
To communicate your benefits effectively, you first need a thorough understanding of what’s included. Your organization’s benefits package likely includes health insurance, dental and vision, life, short-term-disability, voluntary benefits, mental health support, wellness programs, employee assistance programs, and perhaps even retirement plans.
Get to know the ins and outs of your plans. Have an in-depth discussion, perhaps even a webinar, with your carriers to better understand the plans you offer, how they work, what they cover and what they don’t cover. Take this opportunity to also ask your carrier for employee-focused resources such as videos and printed materials that explain how these benefits work, how to access their benefits online, file claims, and a list of frequently asked employee questions so you’ll be prepared to answer employee questions.
Address Common Misconceptions
Misunderstandings about benefits can lead to underutilization. Employees may not fully grasp the value of their health insurance especially when they lack an understanding of how to use them. It is important to address these misconceptions proactively. Below are some of the top misconceptions:
Benefits Are Standardized: Many believe all companies offer the same benefits. In reality, benefits packages can vary widely between employers, often reflecting the company’s culture and values. This is seen most often in employer contributions, which can range widely depending on the employer.
Only Health Insurance Matters: Employees often prioritize health insurance over other benefits, overlooking valuable options like wellness programs, employee assistance programs, employer-paid life, short-term disability, and other supplemental benefits.
Health Insurance Pays for Everything: Health insurance offers employees access to affordable regular routine doctor visits, prescriptions, emergency treatment, surgery and hospitalization, but like everything else, there are out-of-pocket costs associated with utilization like deductibles and coinsurance.
Higher Health Premiums Mean Better Coverage: Some assume that a plan with higher premiums automatically offers superior coverage, but this isn’t always true. It’s essential to look at deductibles, copays, and out-of-pocket maximums. It’s also essential for an employee to estimate how much they utilize their benefits. A healthy person with no chronic conditions may be paying too much in premium for a plan that they do not utilize.
Preventive Care Isn’t Covered: Employees might think that preventive services (like annual check-ups) come with out-of-pocket costs. Under the Affordable Care Act, preventive services are covered at no cost.
Mental Health Isn’t Covered: Many employees may be under the assumption that mental health visits are not covered. Nowadays, many health plans include copays for therapy visits.
You Can Only Use In-Network Providers: While using in-network providers typically offers the best coverage, some plans allow for out-of-network care, often at a higher cost.
Supplemental Benefits Are Complicated and Unnecessary: Employees might think that flexible benefits plans such as Critical Illness or Hospital Indemnity are too complex to understand and unnecessary if they have health insurance. While they can be more involved, these benefits provide valuable customization options that allow an employee to purchase what they need and can afford and can help an employee pay for out-of-pocket costs associated with utilizing their health insurance such as co-pays, deductibles, coinsurance, etc.
Implement Effective Benefit Communication Strategies
Utilize Clear and Engaging Messaging
Clarity is key when it comes to communicating the benefits of your benefits program. Try not to use industry jargon and opt for using more straightforward language that everyone can understand. To make your message more engaging, focus on how these benefits can positively impact employees’ lives. For example, instead of just listing the benefits, explain how they can improve their overall health and well-being
Quick tip: Share real-life examples of employees benefiting from various programs or use testimonials to make benefits relatable and showcase their impact.
Leverage Visuals
Be sure to leverage visuals to break down complex information into digestible chunks. Visual aids like infographics, charts, and brochures can make benefits information more digestible.
Quick tip: Tools like Canva can help create visually appealing materials that simplify information and make it more interesting.
Leverage Multiple Communication Channels
Don’t rely on just one method to communicate your benefits. Use a mix of channels—email campaigns, benefits portal, printed materials, video tutorials and webinars, team meetings, and one-on-ones. This approach ensures that employees receive the information in the way that works best for them.
Quick tip: Leverage your insurance providers! Request a quarterly employee-focused webinar to remind employees of key benefits and to highlight different, less-known benefits of their plan offering.
Promote Year-Round Engagement
Many employers make the mistake of just communicating their benefits during open enrollment and miss out on year-round opportunities to remind employees of all the amazing benefits your organization offers. Regular updates are crucial for keeping benefits information fresh. Monthly newsletters or quarterly updates that highlight key benefits, upcoming changes, or new offerings will help employees stay informed and engaged with their benefits.
Quick tip: Highlight different benefits in various months (e.g., wellness programs in January, financial wellness in April).
In short, effective communication of your benefits program is more than just sharing information during open enrollment—it’s about ensuring that employees understand, utilize, and value their benefits all year round.
At VSMG, we understand the importance of effective benefits communication. Whether you’re looking to enhance your benefits offerings or improve how you communicate your benefits program, we’re here to help. Contact us today to learn more.
About VSMG
Built by and for Arizona public sector employers, VSMG is a leading employee benefits consultant, dedicated exclusively to serving the needs of Arizona’s school districts and municipalities for over 19 years. With offices in Phoenix and in Tucson, we are committed to delivering expert advice, forward-thinking strategies, and cost-effective solutions to help our Arizona’s school district and municipal clients attract and retain employees. Reach out to us today to discover how we can support your organization.
