With the competition in the job market showing no signs of slowing down, employers need to step up their game to become an employer of choice. Obtaining this status means talented job candidates want to work for the company, and the existing workforce wants to stay with the company. While recruitment is important, most employers have figured out that element of the equation. Now, they need to turn their attention to retention.
Employee retention is so important because of the high cost associated with turnover. When employees leave, it will cost their employer 21% of their annual salary to replace them. Keeping employees engaged is one way to keep them happy. However, having a high-quality benefits package is one of the best ways to retain talented employees.
Employee Benefits Strategy
Knowing that a superior benefits package can retain employees and implementing one are two very different matters. Employers may have questions regarding how many benefits to include, how detailed they should be, and so on.
- Matching benefits to employees’ needs. Benefits packages muddle the debate of quality versus quantity. While a one-size fits all approach to benefits won’t work for most workforces, throwing every benefit option that exists at new employees will only confuse them. Employers need to create a benefits package that matches employees’ wants. For example, pet insurance is popular among animal lovers, but it may be an unnecessary addition to a benefits package if most employees don’t have pets.
- Tailoring benefits to employee’s lifestyle. This may seem like a repeat of the above, but it delves much deeper than that. Employees now expect to see what were once voluntary products and more. For example, if a benefits package doesn’t offer short-term disability, life insurance, coverage for critical illness, and more, it’s likely falling behind the competition. Not only that, employees are now seeking benefits options that improve their work-life balance. This means seeing options for flexible work arrangements, parental leave, and even telemedicine.
- Guiding employees through the process. Selecting the right benefits is an intimidating prospect. Helping employees determine which healthcare offerings are best for them is crucial to their long-term happiness. If they feel misled by their employer, they are likely to harbor resentment and even begin looking for other job opportunities with clearer benefits packages.
A business’ employee benefits offerings can mean the difference between a thriving workforce and a tumultuous one. If your company is experiencing high turnover rates, your benefits package could be the problem. Contact the experts at The Reilly Company to learn more about reducing your costs while improving your employee benefits offerings.
Human Resources (HR) employees have a lot to juggle. With open enrollment being one of their more important and stressful tasks, it is vital that HR understands the common pitfalls for employees trying to sign up for health insurance. Knowing what issues trip up employees can help HR professionals implement solutions and strategies to prevent them from occurring in the first place.
Employees miss open enrollment deadlines for a variety of reasons. While HR professionals can’t do much about employees who procrastinate, they can fine-tune their approach to help employees in unusual job situations. For example, truck drivers spend a significant portion of their time on the road. It’s possible for them to be gone from their homes for weeks at a time, leaving little opportunity to address other responsibilities.
Many companies mail home reminders about open enrollment or send out emails. However, for truck drivers, this can be problematic. They can miss mailed information due to being on the road. They can also miss emails since they can’t check their smartphones while driving. By the time they reach their destination, a mountain of other pressing emails could be burying the open enrollment notification. Another problem is confusing websites. Even if the driver does realize the open enrollment deadline is soon, he or she may run out of time from not understanding how to navigate the benefit’s website.
How to Prevent It
Truck drivers are just one example of the people who miss open enrollment due to outside circumstances. Any individual that travels often for work or works unusual hours could wind up in the above scenario. To prevent this from happening HR can put the following practices into place:
- Don’t add to the email clutter. Sending email reminders may seem like a great communication strategy, but it’s easy for employees to overlook messages mired within dozens of other daily emails. Instead, HR should take a note from marketing strategist and build a communication plan that is compelling and hard to miss. For example, employees receive a lot of junk mail and can overlook an email notification. However, it’s easy to connect with Millennials and Generation Z over apps or social media. Consider sending out notifications via a company app or social platforms to reach them. Baby Boomers and Generation X still prefer face-to-face interactions, but a phone call can suffice as well. Get their attention in person or over the phone to ensure they remain cognizant of open enrollment.
- Build an app. Employees who are on the go need solutions they can access anywhere—this means a mobile app. The app should include benefits information, simple explanations for various plans, clear notifications about deadlines, and help tools in case they run into trouble.
- Improve the user experience. Technology baffles some employees. While this isn’t usually the case for younger generations, an outdated or difficult to navigate website can confuse them just as easily as it can Boomers and Gen Xers. To address this, HR needs to make sure their website is intuitive. If employees have to follow several instructions or navigate to multiple different pages, they are likely to put off the task, forget it, or do it wrong.
Employees who miss open enrollment or don’t understand their options can end up uninsured or underinsured. Healthcare is of vital importance to employees across the board, and failing to obtain is erodes their trust in their company as well as their morale. Contact the experts at The Reilly Company to learn more about the importance of employee benefits.