Communicating clearly about any issue has its challenges, but this is especially true for complex issues like employee benefits. Benefits packages contain mountains of information, most of which is specific to the individual. It’s up to human resources to help employees understand these benefits — and it’s in HR’s best interest to do so.
For one thing, if employees misunderstand their benefits, they can’t take full advantage of them. Benefits are a significant part of the compensation package and an enticing reason to work for one company over another. If those benefits are underutilized, employees aren’t getting everything they’ve earned, which only hurts morale.
Confusing benefits are just as problematic. Paying for benefits is a substantial sunken cost — but it’s one companies are willing to shell out for in order to attract and retain top talent. Unfortunately, if employees don’t understand exactly how those benefits work, the potential recruitment and engagement benefits are lost — along with any return on the investment.
Even on a day-to-day level, poorly explained benefits can cause problems. Managers and HR reps get inundated with repetitive questions that waste time and leave everyone frustrated. HR must tackle this problem head-on. Connecting employees with necessary information about benefits serves everyone’s interests. Use these strategies to make your message stick:
1. Become conscious of communication. Building a benefits package isn’t easy. HR reps put in a lot of time and effort to extend benefits for employees while controlling costs for the company. All of this is wasted, however, if no one appreciates the extent of those benefits.
Develop a communication strategy in conjunction with the benefits package. Consider how employees prefer to receive information, and solicit feedback from stakeholders in different departments. Remember: Clear communication doesn’t happen by accident — it takes systematic effort.
2. Keep everyone in the loop. Benefits packages are prone to regular changes as plans and policies are updated. Instead of relying on disparate emails or memos to announce these changes, tell people about them in person.
Use the opportunity to underscore key points, answer questions, and address concerns. Educating employees face to face helps them internalize the information. Plus, giving employees an in-person forum to discuss benefits makes them feel heard, respected, and accommodated. Don’t expect one annual meeting to cover all the bases. Provide ongoing communication in the form of “lunch and learns,” webinars, or small-group sessions.
3. Implement an intranet content management system. It’s 2019. People don’t want to go through intermediaries to get information. The internet has normalized the idea of receiving an immediate response to any query; the same should be true for benefits.
An intranet system organizes information onto a platform that can be accessed by distributed teams and remote workers. If anyone has a question, he or she knows exactly where to go for the answer. In addition to cataloging details about benefits, intranets can be used to announce news and updates, provide healthy lifestyle tips, and connect employees and benefits advisors.
Providing benefits that people don’t understand is a little like throwing a party without first providing the address. An invisible perk is no perk at all. Thus, companies must be more proactive about breaking down benefits clearly and comprehensively. Employees will immediately appreciate the extra effort.
Thomas Murphy is managing partner of employee benefits company Sonus Benefits. With a decades-long background in the employee benefits space, Murphy works with his team and clients on focusing on building strong benefit programs that support their culture and produce better outcomes.
