This November, your employees will be faced with a choice, and we’re not talking about the presidential election or the best fields to hunt in during deer season. We’re talking about the open enrollment period for the benefits offered by your company, and why it is so important your employees are actively involved in the process.
In today’s competitive marketplace, companies are rubbing shoulders with each other to offer the best wages, workplace environments, job titles, and retirement packages to the talent they recruit and the talent they want to keep. Having an excellent compensation program is one thing; making sure employees are both aware and taking advantage of it is another.
Here are five ways you can help employees get the most bang for their buck.
Keep Things Simple
The fewer steps between an employee and the information they need, the better. Many companies offer online portals and benefits calculators so employees can see exactly how next year’s benefits package will impact their paycheck, both in what they can save and what they bring home. Other companies have worked hard on clear communication, specifically when discussing the benefit and vendor changes that occur each year. The easier this information is to access and understand, the less frustrating the process becomes.
It’s easy for most employees to assume that the cheapest plans offer the best rates, but what is “best” is highly relative. Help them discover what is most important to them, not only in the coming year, but also all the way to retirement. Remind them to review their medical expenses to see if their current plan served their needs, and encourage them to consider what additions and changes may occur over the next year that may impact their expenses. Encourage them to review all pre-tax spending accounts to make sure their contributions reflected actual expenditures.
Paint a Big Picture
More often than not, employees understand “compensation” as the cashable number on their paycheck. As a company, however, you know better; and you owe it to your employees to outline their full compensation package each year in ways that are both approachable, relatable, and understandable. For instance, if your company matches 50% of employee contributions up to the first 6% of salary, show how much that is for each employee. Whether or not the employee is taking full advantage, it easily represents how much money is on the table, and whether or not they are leaving it there. The same goes with tax-deferred savings accounts for health and dependent care; employees need to know what they are and how to use them for these offerings to feel like a benefit.
Give Them Access to Financial Professionals
It’s easy to place retirement savings plans on the back burner, but even things on a slow simmer need to be stirred once in a while. By providing employees with financial advisors who are well-educated in the offered plans, they can take a long-term and in-depth look at their current distributions and make changes, if necessary, for the year to come. By providing them with support and information, you are empowering employees to take an active role in their future savings.
These are just a few things companies can do to ensure their employees make the most of their paychecks. This isn’t just corporate altruism, if there is such a thing; studies have shown that companies that clearly communicate how to maximize their compensation offerings have employees that are ultimately more engaged, satisfied, and willing to stay at their jobs. And that’s an excellent return on investment.
Back to Articles