Enrollment season is upon us once more, and, as in the past, it comes with both challenges and opportunities. This year, HR and benefits managers will again face the daunting task of helping employees understand their health care benefits under the Affordable Care Act. Now, however, recently released data from a December 2013 Unum survey of 1, 521 working adults conducted online by Harris Poll shows that employees need and want more information about all their benefits.

In fact, among employees who were asked to review benefits in the prior year, only 33 percent rated the benefits education they received as excellent or very good. This represents a drop from the 37 percent who gave the same rating in the previous year’s survey, and a wake-up call because it reversed an upward trend in ratings since 2009 (29 percent). Benefits managers should also be aware that more than a quarter of employees − 27 percent − rated their benefits education as fair or poor.

Lack of specific benefits understanding

Despite evidence of the importance of quality benefits education, the survey revealed a sizeable gap in knowledge. About three out of four employees reported understanding life (74 percent) and vision (71 percent) insurance “somewhat or very well” – the highest levels of understanding reported in this survey, but only 40 percent said they understand supplemental medical coverage at the same level. In addition, only 47 percent said they understand critical illness insurance “somewhat or very well.” These benefits are important for both employees and their families and without the information they need, many may forego the coverage or be confused when making choices about the amount of coverage needed.

Among those offered Long Term Disability or Short Term Disability benefits, nearly half said that no one explained disability insurance to them. Those who had disability benefits explained to them, either in a group or one-on-one meeting, reported a much greater understanding of the insurance and its value to them, and felt better prepared to make decisions than those who did not have the benefits explained. Results also showed that disability-specific educational materials are tied to positive benefits education ratings – of those employees whose company offered long or short term disability insurance and who received education about disability insurance, 83 percent rated their benefits education positively. These results underscore the importance of education focused on disability benefits – whether it be in person or in print- to an employee’s benefits education experience.

Why benefits education matters

Unum’s most recent survey showed that employee ratings of their workplaces and benefits packages are at their lowest levels in the six years of conducting this research. This should be of concern to companies, because providing guidance to employees about which benefits are right for them, and the value of those benefits, has a payoff for employers as well.

Unum’s research clearly shows the relation between good benefits education and workplace satisfaction. The most recent survey found that while only half − 49 percent − of U.S. employees rated their employer as an “excellent or very good” place to work, 79 percent of employees who rated their benefits education as “excellent or very good” also rated their employer as “excellent or very good.” And only 30 percent of employees who said the education they received was “fair or poor” rated their employer as “excellent or very good.”

Offering employees effective benefits education can contribute to satisfaction with their employer. Survey results showed that even if employees don’t have a particularly good benefits package, those who say they received quality education about those benefits are far more likely to consider their employer a very good place to work.

With employees now being asked to make decisions about their benefits that they have never had to make before, it’s vital for employers to provide the right tools and information so employees can understand their benefits options and choose the coverage that’s right for them. This most recent survey shows that when given the information they need to make informed decisions about their benefits, employees tend to rate their benefits education higher.

The research also underscores the value of an effective benefits education program because when employees understand their benefits, they tend to value them more and, in turn, may then value their employers more for providing access to them.

What you can do

So what’s the answer for companies who want to enhance their benefits education program but find their HR department just doesn’t have the time or resources? The best solution is to contract with a benefits provider who not only offers the benefits that are right for your employees, but will provide the communications and information support to help your workforce understand and appreciate the benefits you’re offering. At enrollment time, that’s a win-win situation for everyone involved.

Methodology

This survey was conducted online within the United States by Harris Poll on behalf of Unum from Dec. 18-20, 2013, among 3,031 adults aged 18 and older, 1.521 of whom are identified as working adults that are full-time, part-time, or self-employed. For complete survey methodology, including sampling and weighting variables please contact Dawn McAbee at dmcabee@unum.com.

The prior surveys referenced in this document were conducted online from Dec. 9-11, 2008 (n=2,137), Dec. 9-11, 2009 (n=2,029), Dec. 6-8, 2010 (n=3,489), Dec. 16-20, 2011 (n=3,339), and Dec. 13-17, 2012 (n=3,031) among a similar population.

About the Author:

Bill Dalicandro is vice president of Consumer Solutions Group for Unum, a leading provider of financial protection benefits through the workplace. The group disability insurance leader in the U.S. for 38 years, Unum’s portfolio of financial protection products also includes life, accident and critical illness, which help protect millions of working people and their families in the event of an illness or injury. In 2013, Unum paid $5.5 billion in benefits to nearly 492,000 individuals and their families. For more information contact Bill Dalicandro at WDalicandro@unum.com or visit www.unum.com. You can also connect with Unum Facebook, Twitter and LinkedIn.