Study Shows 35% of Workers Do Not Understand Their Benefits
Posted: March 17, 2021
According to a new survey, some benefits professionals and their firms need to do more to educate employees on their benefits.
Reason: "Thirty-five percent of employed individuals report not fully understanding any of the employee benefits they enrolled in during their most recent open enrollment period," according to a new survey by Voya Financial. And the number jumps to 54% among millennials.
But there is no need to fret. The survey also revealed 66% of employees and 78% of millennials will be turning to you in 2021 — and not just during open enrollment — for eduction, support and guidance on benefit offerings.
Spotlight financial wellbeing
One major focus for Benefits professionals should be helping employees with their financial wellbeing.
Seventy-three percent of the respondents said they want "support and guidance tools" to give them a better understanding of what they need to save for retirement, emergency savings and healthcare expenses.
"Supplemental health benefits like accident insurance, hospital indemnity insurance and critical illness insurance can be confusing — especially for younger workers, who might have enrolled in these coverages for the first time due to the pandemic," said Andrew Frend, SVP of product and strategy, Voya employee benefits.
Make it simple
While you may give employees tons of information on the benefits you offer, who wants to read it all or has the time?
Simplify the information you offer — workers do not need to know everything, just what is needed to understand if they need this benefit. Then provide additional links for those who want more information.
Also, make it easy to understand; take out the HR/Benefits jargon.
Finally, create engaging education programs that provide year-round benefits education. Frend says they have helped their employees understand and maximize their workplace benefits by offering innovative digital tools.
Posted In: Employee Benefits; Human Resources, General
Want to know more? Read the full article by Renee Cocchi at HR Morning