IBA, as the premier business brokerage firm in the Pacific Northwest, is firmly established as a respected professional service firm in the legal, accounting, banking, mergers & acquisitions, real estate, and financial planning communities. Periodically, we will post guest blogs from professionals with knowledge to share for the good of owners of privately held companies & family owned businesses. The following blog article has been provided by Frank Mengert, founder of ebm, (https://getebm.com/):
Providing Younger Employees With the Necessary Resources to Better Understand Their Benefits
Entering the workforce is a big step for younger employees, and many are quickly introduced to business processes they’ve never experienced before. One of these processes is understanding how employee benefits packages work and the various steps they’ll need to take to enroll.
Employee benefits represent a significant portion of an employee’s total compensation value and can offer a great source of financial stability, especially considering the costs of healthcare and retirement planning. Unfortunately, many younger workers lack the knowledge and experience to fully appreciate this value and need some guidance.
Prioritizing benefits education for younger workers is an important element of creating a positive and supportive workplace culture while helping employees feel more confident in the business.
Why Educating Younger Employees About Their Benefits is Important
Younger employees might not immediately recognize the full value of their benefits package. To some of them, having to deduct premiums for health insurance coverage or retirement savings might seem like an unnecessary expense when they’re young and healthy, and they still have a lot of years before even thinking about leaving the workforce.
However, taking the time to educate them about their benefits options can be beneficial for several reasons:
More Informed Decision-Making
When employees better understand their benefits options, they can make smarter choices about their coverage. This means that if and when they need to rely on specific benefit types, they’ll pay less out of pocket and will have the right level of coverage for themselves and their families.
Better Value Appreciation
By teaching employees the tangible value of each benefit offering – whether it’s related to health insurance, life and disability benefits, or employee assistance programs – employers help their younger workers start to see the long-term value of having employer benefits in the first place. When employees recognize and appreciate this value, it helps them to feel more connected with the business, as they realize that these additional provisions are representative of how their employer feels about their physical health and financial future.
Improved Morale and Retention
When employees realize how important their benefits packages are and that not all businesses provide them, they feel more valued and supported. This perspective is very important when trying to enjoy what you do as a profession, and it only motivates you to contribute more to the business. Combining a comprehensive benefits package with the right type of education can actively increase employee morale, reduce staff turnover, and build a stronger brand.
Maximizes Business ROI
Choosing to offer employee benefits is often a major investment for any type of business, and it’s important to make sure you’re seeing the right returns. By educating employees about their benefits and encouraging them to fully use what’s been made available to them, employers can ensure that these investments are worth the effort.
Removing the Guesswork When Choosing Coverage Options
Employees who just entered the workforce might be overwhelmed by the amount of information they’re given that is relevant to their benefits coverage. Terms like “deductible,” “copay,” and “HSA” may be a completely new concept to them. To help simplify their enrollment process, employers should focus on creating clear lines of communication while providing easily accessible resources to help get set up.
There are a lot of ways employers can start removing the guesswork for employees when choosing coverage options. The first step to take is to limit the use of more technical terminologies and use straightforward language that explains clear concepts surrounding all of their benefits. Many times, simply adding some visual aids like infographics or flowcharts can help illustrate how different benefits work and how they’re likely to be used.
Providing concise summaries of each benefit plan is also helpful. You could create a one-pager that explains the plan’s key features, associated premium costs, and different coverage levels. This provides a quick-reference guide to employees that can easily refer to during open enrollment and throughout the year.
Providing Self-Serve Decision Support Resources
Employees have a lot on their plate, both in the office and at home. This is why providing flexible, on-demand access to benefits information can be so important.
BenAdmin (Benefits Administration) platforms offer a range of tools to help provide this to employees. Businesses can leverage these solutions to provide digital comparison tools that allow employees to see the costs and coverage levels of different plans side-by-side, making it easier to identify the best fit for their needs. They also contain educational video libraries that can provide more engaging explanations of different plan types, breaking down information into a more digestible format. Certain solutions will also incorporate interactive calculators that can help employees estimate their healthcare costs
Leveraging Benefits Call Centers
While self-service resources are valuable, some employees may still have questions or require more personalized guidance. However, rather than placing additional strain on HR teams, providing access to benefits call centers can be a great alternative.
Benefits call centers are staffed with knowledgeable representatives who can answer employee questions, clarify plan details, and even assist with enrollment activities. This one-on-one support can be especially helpful for younger employees who may be enrolling in benefits plans for the very first time.
The great thing about leveraging benefits call centers is that it eliminates the need for HR professionals to spend their time addressing a high volume of individual employee questions. This allows HR teams to focus on more strategic business objectives. This can save considerable time and costs, allowing the business to make sure it’s getting the most value from benefit investments.
Highlight the Value of Your Benefits Offerings
Investing in benefits education for all employees is a smart move for any organization. By providing clear communication, self-service resources, and personalized benefits support when needed, employers can help their employees make more informed decisions about their coverage options and better recognize the value their benefits provide.
Author Bio: Frank Mengert
Frank Mengert continues to find success by spotting opportunities where others see nothing. As the founder and CEO of ebm (https://getebm.com) a leading provider of employee benefits solutions, Frank has built the business by bridging the gap between insurance and technology-driven solutions for brokers, consultants, carriers, and employers nationwide.
IBA, the Pacific Northwest’s premier business brokerage firm since 1975, is available as an information resource to the media, business brokerage, mergers & acquisitions, real estate, accounting, legal, and financial planning communities on subjects relevant to the purchase & sale of privately held companies and family-owned businesses. IBA is recognized as one of the best business brokerage firms in the nation based on its long track record of successfully negotiating “win-win” business sale transactions in environments of full disclosure employing “best practices”.