Employers are caught in a balancing act of managing benefit costs while juggling employee benefits expectations. In a recent survey,[1] business leaders listed managing benefit costs and maintaining employee productivity as a common goal, both now and over the next five years.
Studies[2] confirm that employees value their benefits packages and rank health insurance at the top of the list[3]. Many employees evaluating job offers report the benefits package was influential in their employment decision.
Focus on well-being Gallup has identified the importance of benefits in supporting employee well-being,[4] which is considered critical to keeping employees engaged with their work. Research demonstrates engaged employees have higher productivity, miss fewer workdays and benefit from lower medical costs.
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Balancing tips Employers tend to offer benefits because they are concerned about their employees and want to take care of them. But there is a constant tension between balancing the desire to provide excellent benefits against the need to keep costs under control. Consider the following tips for success:
1. Explore benefits needs. One key to job satisfaction is offering employees the benefits they need and want. Discover this information by:
- Set up informal meetings with employees over coffee or lunch to find out their opinions on benefits coverage, plan choices and carriers.
- Ask for feedback on current benefits coverage to find out their awareness and satisfaction level.
- Request suggestions for other benefits to consider in the future.
Work with the carrier's sales representative to identify usage trends for current benefits. While employers may know the percentage of employees who use their benefits, it's important also to know the services that are used most.2
2. Review costs – Explore premium options with the insurance carrier. Select those that best fit employee needs and benefits budgets now and in the next three to five years. Look for carriers that offer consistency in premiums to assist employers and employees in planning their budgets. Share this information with an employee benefits committee to solicit their feedback on the options. Also ask for suggestions for how best to educate employees about their benefits.
3. Communicate benefits value and cost – Studies show when employees review information on benefits packages, they spend 15 minutes or less reading the material and evaluating their choices. Employers can enhance relationships with employees by investing time in explaining the total value of the benefits, pros and cons of plans, defining benefits terms and coverage options and helping employees think through the type and level of coverage they need.
It's also important to get employees' buy-in on benefits costs and ways to reduce health care expenses. Here are three ideas:
- Ask the insurance carrier representative for information on benefits to share with employees and their families.
- Visit the carrier's website for tips on enhancing benefits communication.
- ·Encourage employees to make healthy choices by eating nutritiously and working out regularly. Studies show that employees who participate in wellness programs are more productive, take less time off and have lower medical expenses.
Balancing costs and benefits Employers know benefits are vital to keeping employees satisfied and engaged with their work. But they struggle to balance budgets against the desire to provide meaningful benefits plans. Consult your benefits broker for help with benefit choices and communication needs. Keeping abreast of health care changes can be a daunting task. Work with a reliable insurance carrier sales representative who is interested in helping you and your clients succeed.
Michael Scheetz is vice president – group marketing for Ameritas, headquartered in Lincoln, Neb. Scheetz joined Ameritas in 2011 and has worked in the insurance industry for more than 15 years. Currently he serves on the education committee for the National Association of Dental Plans. For more information about Ameritas dental and vision, visit ameritasinsight.com or email [email protected].
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