Employee Benefits Communications
Do
you communicate company benefits to your employees? Life, health, 401K, dental,
paid vacations, days off or holidays? You should communicate, in writing, these
benefits to your employees at least annually so they understand the cost of
these benefits.
Many companies already explain costs and benefits to employees.
How about these benefits?
1. Company share of Social Security and Medicare.
2. Unemployment insurance.
3. Workers' compensation and employee safety costs.
4. Company automobile insurance
5. Company general liability insurance
the first two points concern government insurance programs. Include these
benefits because employees tend to be dismissive of the company expense
involved.
Workers' compensation insurance covers on the job injuries and illnesses for
employees. It is a benefit. Simply multiply the individuals’ payroll by the
rate. Explain why this is a benefit and how much it costs. Most employees do
not give workers' compensation a second thought, but largely because they are
never told.
Company automobile insurance is a benefit for drivers or employees who ride in
company transportation. Drivers benefit from the company assuming liability for
all accidents and covering the individual driver. This protection is often
overlooked as an employee benefit.
Consider common carriers. You pay for a driver and their insurance. You can
avoid the risk of trucking accident by not using employees. You can avoid the
risk of trucking by requiring your employee to provide insurance. When you
choose to provide the insurance, you pay for your employee's liability as well.
That's a benefit.
General liability insurance has similar impacts on employee liabilities as does
the company automobile liability policy. The company assumes responsibility for
employee errors in maintaining premises or manufacturing products.
Absent company risk management programs, employees might be held responsible
for their liabilities. The independent contracting driver and the employee both
face risks of road travel, but the employee has the benefit of company supplied
insurance.
Communicate these benefits every year for two reasons:
1. Inform the employee of the costs of these benefits.
2. Remind the employee of these risks, and their responsibility to operate
safely.