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Do Your Employees Appreciate Their Benefits and Make the Connection to Their Total Compensation?

Do Your Employees Appreciate Their Benefits and Make the Correlation to Their Total Compensation?

It’s just a fact that employers, especially those in highly competitive industries, must have a striking benefits package to remain competitive in attracting and retaining the best employees. You probably spend a great deal of time and money providing your employees with an attractive benefits package, but do they actually appreciate what you’ve invested? Do they even have the slightest idea of how much it costs you to provide them with it?

Sadly, most employers will find that their employees have no idea what they invest in providing good benefits. In fact, a number of surveys have shown that most employees vastly underestimate how much their employer contributes toward their benefits. These surveys also typically find that employees tend to have a negative attitude about the benefits their employer offers. Most employees tend to focus more on elements like cost-sharing methods and uncomfortably rising premiums.

The good news is that most employees don’t have this attitude because they’re ungrateful, but rather because they really just don’t realize how much it costs you to provide them with their benefits. Considering you want and need a return on such a major investment, you are left with figuring out how to better educate your employees on your side of the story. Total compensation statements are one way you can show and tell the compensation story and help employees better appreciate their benefits.

Give Employees a Total Compensation Statement

If you asked your employees to write down their total compensation, they’d probably write down their gross income. Even though what you pay toward an employee’s benefits makes up a substantial portion of what you’re paying to keep them, an employee rarely considers what you’re paying toward their benefits as compensation.

You can illustrate the value of total compensation by breaking it down into various parts charts and graphs like the ones myBenefitStatements uses when they create a total compensation statement.  When considering benefit total compensation statements, be sure to include any other compensation perks, such as employer-paid license fees, tuition reimbursement, on-site childcare, and so forth.

Include Cost as Part of Your Benefits Education

Most employers, whether it is during orientation for new employees or during annual enrollment periods, will provide at least one setting for employees to learn about their benefits. Employers shouldn’t miss out on the opportunity to also emphasize the value of the benefits being offered and to remind employees that benefits are part of their total compensation. myBenefitStatements is now partnering with a number of employer groups to provide total compensation statements during annual review time to show the total cost of benefits; what you, the employer, pays; and then the portion that the employee pays as well as pay increases and incentives paid throughout the year.

It will be impossible for you to capitalize on your investment in benefits if your employees don’t appreciate what you’ve invested. Remember, total compensation or benefit statements can go a long way to improve how your employees view their benefits.

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Evaluate And Plan Today For Good Enrollment Results In The Future

Companies devote a great deal of energy and countless working hours to meet the demands of end-of-year enrollment periods. Since the offering of quality benefits is a crucial aspect in keeping existing employees and attracting new employees, having a less than enthusiastic response to an open enrollment can be very distressing for employers.

One thing that you, the employer, can do to improve enrollment results is thoroughly evaluate your current benefits and employee pool. Your offerings need to be a good fit for both your business and employees. Some employers will immediately find obvious indicators that their benefits package needs a major overhaul. Meanwhile, some will need to look for more subtle hints. Here are three common signals that it may be time to make some benefit changes:

1. Workforce Demographic Changes

Any shift in the demographics of your employee pool can simultaneously shift insurance needs. Employers often find that this shift occurs every so often from nothing more than time elapsing. For example, the single college graduate that was hired five to ten years ago may now have a family and be interested in supplemental life insurance, day care accounts, flex time schedules, and such.

A substantial change to your employment numbers, such as from adding a new department or gaining a competitor, can also signal that a change might be needed. You could qualify for better pricing on your benefits from simply having a larger employee pool.

2. Direct And Indirect Employee Complaints

If employees are grumbling to you, your management team, or their co-workers that they aren’t satisfied with their benefit choices -or- they indirectly let you know their dissatisfaction through poor enrollment results, then you need to determine the cause of the dissatisfaction and put your investment in employee benefits to better use.

3. Rise in Costs

Take time to reassess your benefit package when the cost is constantly on the rise and anytime you question if you’re getting the most value for your benefit dollars.

Good enrollment results require good planning. This planning should take place long before the open enrollment period arrives to best avoid a poor enrollment outcome. Some key measures to consider during the plan phase include the following:

* Surveying employees and conducting focus groups are two excellent ways to determine what benefits your employees find most attractive. Of course, you aren’t going to be able to satisfy every need of every employee. However, the communication process can be used to construct a benefits package that’s more on target with the overall needs of your employees. It also shows employees that you care about their needs.

* Meet with your benefits adviser to make sure that your benefits, such as medical and dental, are competitively priced. If not or you just want to see if you can get a better price, then you might begin the request for proposal process.

* You should compare your offerings to what your main competitors are offering. It will be difficult for you to hang on to existing employees, much less attract new employees, if your competitor is offering a large selection of well-priced benefits and you aren’t.

* It may be prudent to consider adding new benefits to your plan. Don’t let the dollar signs scare you away from new benefit offerings. There are supplemental benefits that can be offered on a 100% employee-paid basis. The addition of pre-tax flexible spending accounts for dependent day care or health care is another option. Even when employers aren’t contributing to the cost, studies have shown that employees typically appreciate these types of additional benefits just being available to them.

* Establish a routine midyear review to see how each of your open enrollments go and to determine ways that future enrollment processes can run more smoothly. For example, you might review the effectiveness of the communication process, if there were better ways to help employees make good enrollment decisions, and the cost-effectiveness and efficiency of in-house and outside resources and technologies.

The evaluating and planning process may be tedious, but the benefits of a smoother running enrollment process and better enrollment turnout are certainly worth it for both you and your employees.

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Planning Ahead For A Successful Benefit Open Enrollment

Planning Ahead For A Successful Benefit Open Enrollment

The substantial amount of labor and hours involved in open enrollment season is something all too well-known to benefit administrators. But, are you making it harder than it should be? Administrators can make the open enrollment process go much more smoothly, and with a lot less intensive labor, by simply assessing the effectiveness of past enrollment processes before the new season begins. Let’s look at four practices to help you assess your process and determine what adjustments can be made to make the process more efficient.

1. Taking Advantage Of The Pre-planning Phase

Begin by clarifying your business’s objectives. You can then evaluate benefit plan designs. Whether it’s health savings accounts, consumer-directed plans, reimbursement accounts, or so forth, the important point is to determine what options best fit your business’s goals and employee pool.

Other considerations during the pre-planning period should include your budget for benefit administration costs, what and how technology will be utilized to make the enrollment process as efficient as possible, and whether the administration of benefits will be outsourced or done within your business.

2. Developing And Fine-tuning A Project Plan

Your project plan should be clearly defined and stipulate the following elements:

* The dates for the enrollment period.

* What resources are at your disposal and how they are to be allocated.

* A checklist of all tasks.

* How much lead-time will be needed for the addition of new employees and, if applicable, changing vendors or carriers.

* The training schedule for customer service reps and benefit staff members.

Additionally, it’s always prudent to have a contingency plan in place and to directly oversee the development of the project plan at each stage.

3. Educating Employees On Maximizing Benefits

A 2010 MetLife Employee Benefits Trend Study showed that employees remain extremely interested in communications with their employers regarding financial advice, retirement planning, and other benefit options. In fact, the overwhelming percentage of employees feel that communication has become a very important piece of the enrollment process.

Employers should provide their employees with the education they need to make wise health care decisions and the tools necessary for them to successfully navigate the health care system. There are a number of ways you can accomplish these goals, such as benefit calculators, health and wellness fairs, in-service meetings, direct mail benefit information, and online benefit tools.

It’s also important for employers to communicate the overall value of offered benefits to employees. Your employees should be informed about trends in the insurance industry, whenever you add more value to their health care plan, and how much you are contributing for the offered benefits.

4. Foresee The Tasks To Follow Open Enrollment

Employers should foresee and properly plan for the tasks that will need to be accomplished during the post-enrollment period. If not properly planned for, these tasks can create just as many problems as those that need to be done before and during the open enrollment period. Make sure to address the following points:

* ID card distribution

* payroll (payroll feed schedule, timing of the last payroll period, and payroll deduction automation)

* quarterly audit schedule with the carrier

* follow-ups on carrier inaccuracies

* starting a plan for the next year

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