As benefits package design continues to emphasize a shift of responsibility to employees, another shift should be occurring — from "offering" benefits to "selling" them to the workforce.
That's one of the conclusions of a white paper based upon research commissioned by Colonial Life. The carrier wanted to find out more about the decision-making process behind benefits selection. What it found was that employees are fine with taking on more responsibility for their benefits packages. But they want their employers to do a better job of selling coverage to them. (The white paper can be found here.)
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"The way communications are presented, and the content within them, can play a large role in motivating consumers to enroll once the opportunity arises," Colonial Life's white paper said. "Too often, the communication vehicles used by employers are too difficult to understand and digest. Employees can be overwhelmed with cumbersome, repetitive and tiring messages that fail to encourage the behavior their employers are looking for. The quantity of the communication is not the answer — it's the quality of the information."
In other words, the components of a benefits package are similar to products available in a retail store. For the best outcomes for both parties — employer and employee — effective sales techniques can help employees decide which of the options available will best meet their needs.
Of those surveyed, 60 percent said they felt their employer's benefits communications was effective — leaving another 40 percent who didn't find it helpful, with 7 percent saying they couldn't understand the benefits communications at all. Employees said online tools can help them understand their choices, but making good decisions requires more than online services can provide.
What's the best way to make a benefits decision? Researchers found that employees believe one-on-one discussions with a benefits expert — think sales person — is the best way for them to make effective choices. But just 43 percent of employers surveyed said they offered such a service.
Among the research's major findings:
- Employees strongly indicate they want choice in their benefits, but offering an overwhelming number of options can negatively affect decision-making and purchasing.
- Employers can encourage participation by informing employees about the numbers of their coworkers who have enrolled and what benefits others are choosing.
- "Nudging" employees to make an active choice on each benefit option encourages them to become better educated about their needs and options to meet them.
- Three weeks is the optimal time frame for employees to adequately review benefits materials and make good decisions for enrollment, and dramatically increases satisfaction with the benefits education and enrollment process.
- Younger employees — often assumed to be most comfortable with a completely online process — may benefit most from personal assistance offered by one-to-one benefits counseling session.
See also: Should we move open enrollment season?
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Dan Cook
Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.
