Can Employers Get a “ROI” From Employee Benefit Programs?

Many companies make a considerable investment in employee benefits to attract and retain employees.  But, are these companies getting the best return on their benefits investment?  According to a recent survey by corporate communications firm PL Communications (PLC), companies need to do a better job communicating because employees are not taking full advantage of the benefit programs their employers purchase for them.   

About half of the corporate Human Resource professionals surveyed felt that employees do not fully use benefits such as Employee Assistance Programs, Vision Plans, and Flexible Spending Accounts.  While these programs typically cost very little for employers to offer, they provide tremendous advantages to both employees and companies in the form of benefit related cost-savings and income tax liability reductions.  According to PLC president Paul Lavenhar, “Supplemental programs like these could have higher participation rates if companies better educate employees on what these types of plans have to offer.”  

Why explain benefits clearly?

Laurie Murphy, president of PeopleAreKey, assisted in designing the survey.  According to Murphy, “When benefit programs are designed and communicated effectively, they offer health, productivity, and financial advantages for companies and their employees.  To help employees better use benefits to address health, productivity, and financial issues they may face, companies must explain benefits to employees clearly.  Companies should also solicit feedback to determine whether they understand and are satisfied with existing benefits, as well as determine their most highly desired benefits."  

Employees are very interested in learning about their benefits

Three-quarters of the HR executives surveyed said that employees are very interested in their benefits programs.  However, most companies lack employee benefits communications.  While 62% of the company respondents stated the business has an employee communication plan, only 42% said the communication plan addresses employee benefits or the firm has a separate employee benefits communication plan.

Lavenhar adds, “Companies usually do a good job of talking to the their employees about benefits during annual enrollment periods.  However, a company’s benefits program is not a once-a-year investment, and employee benefits communications shouldn’t be either.  A good communications program is critical to companies making the most of their benefit investment.”   

Get the maximum value from your benefits

Lavenhar and Murphy agree strongly that communications must be customized to the needs of the employees and the company.  By helping employees make the best use of their benefits, both employees and the company get the maximum value from the program. 

They add, "Communications can include such methods as periodic newsletters, e-mails, payroll stuffers, mail sent to employees' homes, online surveys, or workplace meetings to educate employees about specific programs offered.  Health screenings, fairs, and incentive campaigns can also help attract employees' attention and promote behavior changes in regard to critical concerns such as smoking, disease prevention, and weight reduction.  These behavior changes can result in healthier employees and a healthier bottom line."   

Turn your benefits investment into a competitive advantage  

Employees view benefits as an additional form of compensation.  In a tight economy where   salary increases are lower and less frequent, benefits take on greater importance.  They are viewed by employees as a symbol of how much their employer cares about their well-being.   This perception is one of the most critical factors in a company's ability to attract, engage, and retain the talent it needs to be successful.  Employee communications can help turn a company’s benefits investment into a strategic competitive advantage.

The independent survey conducted by PL Communications included New Jersey businesses with 250-2,500 employees in a diverse mix of industries including Construction, Finance, Insurance, Manufacturing, Real Estate, Trade, and Transportation.  To learn more about they survey results, call PL Communications at 908.889.8888 or email info@plcommunications.com

PL Communications (PLC) is a full service corporate communications firm that has produced promotional materials and internal communications for such clients as Novartis, Selective Insurance, CHN Solutions, and MetLife.

PeopleAreKey, Inc. consults with organizations in recruiting, engaging, and retaining high performing diverse talent; enhancing organizational effectiveness and sustainability; and strengthening competitiveness as an “employer of choice.”