The road to better voluntary benefits participation is congested and riddled with needless obstacles that easily can be removed with the right employee communications strategy.
MetLife’s 12th Annual U.S. Employee Benefit Trends Study (EBTS) suggests that favorable conditions are already in place for smoother travel. Half of more than 1,200 full-time employees who were surveyed expressed satisfaction with their benefits – the highest level reported since the survey began 12 years ago.
But there’s a clear disconnect between their positive views and actions. One key indicator is that employer satisfaction with the level of participation in these programs actually fell to 36% in 2013 from 42% the previous year surveyed.
One way to improve participation is to respond to employee interest in having more benefits choice. Nearly 60% of employees expressed interest in having access to a wider variety of benefits to meet their unique needs, while the same percentage is willing to pay more for greater choice. However, with more choice often comes confusion, especially if benefit options aren’t adequately explained. Consider, for instance, that 38% of the employee respondents doubted their previous benefits enrollment decisions and 42% do not believe they use their benefits effectively.
Need for deeper engagement
Employees appear to be rushing decisions and rubber-stamping previous benefit elections without giving more careful thought to the process. For example, employees, on average, devote only about 20 minutes to benefits enrollment and as many as 61% of the respondents say they are likely to enroll as soon as they receive the materials.
Michael Fradkin, MetLife’s senior vice president, Markets and Growth Strategies, notes “According to the Study, 27% of employees roll over their previous benefits selections without review, or fail to participate at all, while only 20% of employees take the time to review their enrollment choices several times before finalizing their selection.”
He goes on to say “the research shows that engaged employees not only lead to higher participation, but can also pay dividends when it comes to employee loyalty.” Employees who praise their company’s benefits communications were found to be more than twice as likely to describe themselves as “very loyal” compared to those who do not appreciate those efforts.
With as many as 53% of employees stating they need more help understanding how their benefits work or meet their needs and 40% wanting their employer to help them achieve greater financial security through employee benefits, it is important for employers to maximize the effectiveness of their communications. Brokers have an opportunity to help their clients revisit their benefits communication strategy to ensure materials are as clear as possible.
Template for change
Mindful of these challenges, MetLife research points to the following five enrollment priorities to help drive employee participation and boost employee loyalty:
1. Focus on relevance – It’s critical to tailor benefits communication to the unique needs and desires of each workforce. For example, the Study found that 79% of employees who work for companies with more than 500 people value a confirmation of benefits enrollment elections – an approach that just 48% of employers said they use.
2. Deliver access to benefits education – Since employees are busy, the most effective way to educate them about their plan options is to provide them with 24/7 access to information. This way, they can give more careful consideration to the enrollment process with family members and make more appropriate decisions at their convenience.
3. Simplify benefits communication – Communication campaigns should include content that’s written in simple language without any jargon, as well as messages that are personalized to employees’ circumstances. Employees who describe their benefit communications as easy to understand are nearly five times more likely to find enrollment simple than those who struggle through the process, according to the Study.
4. Embrace technology – The use of technology in benefits communication has gained considerable traction, with 41% of employee respondents preferring to enroll online last year vs. just 13% who favored a paper-based approach. It’s also worth noting that 70% of Gen Y surveyed found live online chat a helpful option, while 69% cited mobile apps. These preferences will become more pronounced as Millennials represent a higher percentage of the workforce.
5. Establish measurable goals – At a time when credible data and metrics are more important than ever before, the key to greater plan participation and higher benefits satisfaction hinges on establishing measureable goals. The Study found that employers that built their communication and enrollment activities around this philosophy were more than twice as satisfied with voluntary benefits participation as companies that did not take this approach.
To learn more about how to engage employees and maximize participation during annual enrollment, visit BenefitTrends.MetLife.com.
Bruce Shutan is a Los Angeles-based freelance writer.
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