Beckworth Beneficial Blog

Posted by: Admin

Posted on: Apr 20, 2023 at 12:43 pm

Why Should You Educate Your Employees on Benefits?

The vast majority (80%) of employees would choose a job with benefits over an identical job that offered 30% more salary but no benefits, according to a recent survey by AICPA. But many employees still don’t understand how their benefits work and may not see their value. As an employer, it’s essential to understand your role in helping employees understand their benefits package. 

What Are the Advantages of Improving Benefit-Literacy? 

When your employees don’t understand their benefits package, they’re more likely to choose options they perceive as safe. This may result in overinsurance and higher cost plans than they need and can cause employee dissatisfaction. Clearly communicating your company’s benefits plan can be advantageous in numerous ways. 

The following are examples of how effectively educating employees about their benefits can positively impact your organization: 

• Increase plan participation.
• Improve employee engagement.
• Help employees reach long-term financial goals.
• Increase employee loyalty.
• Increase employee attendance.
• Improve employee focus and productivity.
• Improve employee understanding of total rewards and compensation. 

How Can I Educate My Employees on Their Benefits? 

Employees who are happy with their benefits plan are more likely to enroll and maximize the offering. But even the best benefit plan can be improperly used if your employees don’t understand it.  

Consider the following guidance for educating employees on company benefits: 

• Offer one-on-one discussions between HR and employees.
• Provide a detailed directory of all company benefits.
• Schedule meetings to go over company benefits.
• Repeatedly remind employees about the ways they can join or leave your plan.
• Communicate in different formats (e.g., emails and presentations).
• Ensure your benefits information is easy to understand for everyone.
• Provide guidance to your employees for selecting their plan.
• Offer total compensation statements.
• Keep the conversation going all year round. 

As an employer, it’s up to you to ensure your employees have the skills they need to make informed decisions about their benefits. For more benefits information, contact Beckworth Beneficial today.  

Get Your Benefits Plan 

The agents at Beckworth Beneficial can help you find the right benefits plan for your company. We pride ourselves in finding flexible benefits solutions that fit your business needs. Contact us today to speak to an insurance agent. We operate in Fresno, California.