Communicating Benefits to Employees

Communicating Benefits to EmployeesOrganizations must communicate benefits information to employees so that they will appreciate the value of their benefits. This is essential so that benefits can achieve their objective of attracting, motivating, and retaining employees. Employees are interested in their benefits, as detailed in the “Did You Know?” box. Also, they need a great deal of detailed information to take advantage of benefits such as health insurance and 401(k)plans. It follows that electronic technology such as the Internet and supporting databases can play a significant role in modern benefit systems.In practice, it is difficult for employees and job applicants to understand the value of their benefits, especially the complexities of health insurance and the nuances of getting the most out of retirement benefits. The edge in the labor market goes to employers that help them understand. These employers figure out how to use plain language, and they spread messages through multiple channels, online and offline. The American Speech- Language-Hearing Association (ASHA) uses Airbo, a Pinterest-style site that employees can link to from any connected device where they receive email. Every piece of content ends with an interactive question to gauge understanding; responses become data to inform ASHA’s human resource department about whether the content is being received and understood. Sedgwick, a firm that provides client companies with services to manage their benefits, gets its own employees highly engaged by providing them with total compensation statements that estimate the value of what they will earn in the following year. MidAmerica Financial Services also provides similar kinds of information in job offers, so candidates can compare MidAmerica’s total compensation package with what they are earning in their current job.44 Besides simply delivering information about benefits’ value, some companies, including Danone North America, also offer tools that help employees select and use benefits. An example is software that uses data about an employee’s demographics and health status to recommend the health insurance option that best fits the employee’s needs.45Employers have many options for communicating information about benefits. To increase the likelihood that employees will receive and understand the messages, employers can combine several media, such as brochures, question-and-answer meetings, intranet pages, memos, and e-mail. Some other possible media include paycheck inserts, retirement or health coaching, training programs, and benefits fairs. An investment of creativity in communications to employees can reap great returns in the form of committed, satisfied employees.