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 employees have no idea what is invested in providing good benefits. A number of surveys show employees typically underestimate how much their employer contributes toward their benefits and often focus on cost-sharing methods and rising premiums.
The good news is that most employees aren't ungrateful; they simply don't realize the employer contribution. If you want a return on that investment, you need to tell your story so employees better appreciate their benefits. There are several low- or no-cost ways to educate employees.
Give Employees a Total Pay Statement. If you asked employees to write down their total compensation, they'd probably list gross income. Employer-paid benefits are a substantial part of total compensation but are rarely seen as such.
You can illustrate total compensation with a clear pay statement chart. Outsource custom statements or build one with a spreadsheet, and be sure to include employer-paid items like license fees, tuition reimbursement, on-site childcare, and similar perks.
Include Cost as Part of Your Benefits Education. During orientation or annual enrollment sessions, emphasize the value of benefits and remind employees that benefits are part of total compensation. If your carrier conducts training, ask the representative to mention total program cost, what you pay as the employer, and what the employee pays.
Consider Adding some Perks. Quantity—having additional choices—can be as important as quality. Adding voluntary benefits and low-cost perks can increase how much employees appreciate the package; consider talking with your agent about voluntary options such as Voluntary Services Insurance.
Small perks like gym discounts, community service days, and discounted pet insurance can boost perceived value without large employer expense. You might also offer programs such as Pet Pak Program Supplemental Insurance where appropriate.
In closing, you cannot capitalize on your investment in benefits if employees don't appreciate what you've invested and what they've gained. It doesn't take much effort to learn how employees view their benefits, and when perceptions are poor, improvements can often be made inexpensively. If you want assistance, ask your agent.
Frequently Asked Questions
How do I show employees the full value of their benefits?
Create a total pay statement that lists salary plus employer-paid benefits so employees see the full compensation picture.
What are simple, low-cost perks that increase perceived value?
Options like gym discounts, community service days, and voluntary supplemental plans often cost little to implement but improve employee appreciation.
When should benefits cost be included in education sessions?
Include cost information during new-hire orientation and again at annual enrollment so employees understand employer and employee shares.
How can I decide which voluntary benefits to offer?
Survey employees for interest and consult your insurance agent to match voluntary options to workplace needs.