Financial planning can feel overwhelming, and many Americans are looking for resources to make more informed decisions. The Principal® Global Financial Inclusion Index shows that employers are among the most trusted institutions for helping workers feel financially include.
When employees turn to their employer for guidance during benefits enrollment, clear communication is essential. I recently hosted a webinar with an award-winning journalist and a passionate HR executive where we developed five guiding principles of effective benefits communication. These principles are intended to help financial professionals and their employer customers have more meaningful and impactful communications with their workforce.
Our research shows that employees are increasingly looking to their employers for financial support
There is a misconception that insurance providers do not want people to use the benefits offered to them through their employer. But at the end of the day, Principal® wants people to understand and use the benefits available to them, and we want the process to be as easy as possible.
Clear communication goes beyond simply sharing information—it can deepen the trust workers have in their employers. In fact, employees with access to key benefits are up to 22% more loyal to the company—even when they don't actively use those benefits.2
The second guiding principle of clear communication is about REACTING to the needs of the employees. That starts with listening and collecting information about what’s top of mind for them. For example, our Business Owner Insights research shows that complex jargon is the top pain point employees face when it comes to benefits enrollment.
Here are a few questions to consider asking employees to collect necessary insights:
- Are they feeling prepared for enrollment season?
- Do they know where to find benefits information?
- Is the enrollment process easy to navigate?
- Are they worried about healthcare costs?
- Do they feel their benefits package is tailored to their life stage?
After a change has been implemented, it is important to REPEAT the process—have another conversation with employees, listen again, react, and so on. An open line of dialogue helps employers know how their workforce is feeling about their benefit options, while helping them feel seen and heard.
At Principal, we are always looking for feedback from our customers and incorporating that feedback into any enhancements or adjustments we make. Listening, reacting, and repeating the process can lead to continually improving the benefits experience.
With five generations active within the workforce, personalizing benefits is more important than ever before. Employees want to be able to RELATE their benefits to their personal needs.
According to our research, employees who feel that their benefits relate to their life stage are 1.2 times more likely to feel included at work, and nearly two times more likely to trust the company’s ethics.2
Since employees are less likely to take advantage of benefit options if they do not understand them, employers can provide real-world examples of how benefits can help protect workers.
People respond to other people best. Employers can ask an individual who has used their benefits to share their story. For example, we have a customer—who graciously allowed us to share her story—whose son suffered a severe dog bite. Throughout the course of hospitalization, multiple surgeries, and months of healing, being able to easily access her benefits was incredibly helpful—she could keep her focus on her family (instead of her finances).
Specific and personalized examples of benefits being used can help encourage employees to not only sign up for benefits, but to use them when needed.
Benefits communication is not a “one-and-done" event; it is an ongoing process. Instead of a once-a-year effort during enrollment season, RESPOND with regular communication. Try pre-enrollment awareness, offer enrollment decision support, provide post-enrollment engagement, host ongoing education sessions, etc.
Another way employers can respond is by measuring the outcomes of enrollment season. Try an employee survey that asks if they enrolled, understood the options, used the benefits, etc. This can give an employer a clearer picture of benefits utilization, opportunities for future communication, and a way to measure outcomes.
Lastly, having and maintaining good relationships with vendor partners and financial professionals is crucial. They’re an essential part of the overall benefits experience and can greatly impact how employees interact with benefits.
Benefits are not just financial tools or a box to check; they can help prove to employees that their employer understands them and wants to help them feel financially secure. With these five guiding principles, companies can help cut through confusion so that employees better understand the benefits that are available to them and use them when needed.
The organizations that will stand out will not necessarily offer the most benefits; they will be the ones that communicate those benefits most effectively. When employees understand how their benefits are tailored to protect their health, income, family, and future, they are more likely to use them and trust the company providing them.
Additional resources:
The five guiding principles of benefits communication (PDF) Workplace benefits drive employee belonging and inclusion - What's top of mind for today's business owners
(webinar replay)
